Declining Balance Method
A common depreciation-calculation system that involves applying the depreciation rate against the non-depreciated balance. Instead of spreading the cost of the asset evenly over its life, this system expenses the asset at a constant rate, which results in declining depreciation charges each successive period.
Investopedia Commentary
For example, if an asset that costs $1,000 is depreciated at 25% each year, the deduction is $250.00 in the first year and $187.50 in the second year, and so forth.
Related Links
Appreciating Depreciation
Reading The Balance Sheet
Advanced Financial Statement Analysis
See also: Accounting, Depreciation, General Depreciation System - GDS, Modified Accelerated Cost Recovery System - MACRS