Double Declining Balance Method

This method of Depreciation counts Depreciation equal to twice the asset’s book value each year compared to straight line Depreciation. It is an accelerated form of Depreciation. Under this method also, majority of Depreciation is charged in the first few years and lesser Depreciation is charged in later years. This method is more difficult to calculate Depreciation than the straight line method.
Depreciation for a period = 2 x straight-line Depreciation percent x book value at beginning of period.
Some key points of double declining balance method:
The model accelerates Depreciation compared to straight line.
The book value is reduced each year by a fixed percentage.
The most used rate is twice the SL rate; called double declining balance (DDB).
It has an implied salvage that may be lower than the estimated salvage.
It is not an approved tax Depreciation method in the United States. It is frequently used for book Depreciation purposes.