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What is double declining balance method of depreciation? And how does it benefit the organisation?

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تم إضافة السؤال من قبل Umair Shoukat , Finance & Accounts Officer , USAID | NEDPG Project, Semiotics Consultants
تاريخ النشر: 2017/05/22
Ashraf E. Mahmoud (PhD)
من قبل Ashraf E. Mahmoud (PhD) , University Lecturer, Freelancer Consultant and Trainer for Int'l Business & Banking TF. , FreeLancer

Thanks for invitation,

According to the double declining balance method of depreciation, It seeks to take most of the depreciation charges upfront, in the early years, lowering profits on the income statement, sooner rather than later under the theory that most assets lose most of their value shortly after being acquired rather than evenly over a longer period of time.

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