en     ru     jp
 
 
private banking
private banking
private banking
private banking
private banking
private banking
private banking
     
 
Home
      
Knowledge Base
      
Financial Glossary
      
Declining Balance Method
       
 
Back

Declining Balance Method

 Search definitions     
  Search  

Declining Balance Method
A common Depreciation-calculation system that involves applying the Depreciation rate against the non-depreciated balance.
    
Depreciation methods that provide for a higher Depreciation charge in the first year of an asset's life and gradually decreasing charges in subsequent years are called accelerated Depreciation methods. This may be a more realistic reflection of an asset's actual expected benefit from the use of the asset: many assets are most useful when they are new. One popular accelerated method is the declining-balance method. 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.
    
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.
Posted by  Institute for International Research, PrĂ©vis AG
 
  Back  
  Print  
  Email  

 

private banking
private banking
private banking
private banking
private banking
private banking
Get Adobe Flash Player to view the media
FlashPlayer required to view the media

 
Home News Library Newsletters Event Calendar Advertise About Contact FAQ
Privacy Policy     Terms of Service
 

©