13.07.2022 - 05:14

What is the 200 DB depreciation method?


What is the 200 DB depreciation method?

Answers (1)
  • Duke
    April 16, 2023 в 15:27
    The 200 DB depreciation method, also known as double-declining balance depreciation, is an accounting technique used to depreciate assets at an accelerated rate. This method calculates depreciation by taking two times the straight-line depreciation rate and applying it to the asset's beginning book value. This results in a higher depreciation expense in the early years of an asset's life and a lower depreciation expense in the later years. The 200 DB depreciation method is commonly used for assets that experience rapid technological or functional obsolescence, as it allows companies to recoup more of an asset's cost in the early years when it is still generating significant value.
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