Definition
An accelerated depreciation method that applies twice the straight-line rate to the asset's declining book value each year. Results in higher depreciation in early years and lower in later years.
Formula
DDB Rate = (1 ÷ Useful Life) × 2; Annual Depr. = Book Value × DDB Rate
Example
Asset with 5-year life: DDB rate = 40%. Year 1: $50,000 × 40% = $20,000 depreciation.