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Definition: Double-declining balance depreciation
Category: National accounts
Double-declining balance is a form of geometric depreciation in which the constant annual rate of capital consumption is set equal to 2*V/T, where V is the value of the asset when new and T is the service life of the asset in years. http://ec.europa.eu/eurostat/ramon/statmanuals/files/oecd_measuring_capital_2001_en.pdf
Source:
Organisation for Economic Co-operation and Development (OECD), "Measuring Capital - OECD Manual: Measurement of Capital Stocks, Consumption of Fixed Capital and Capital Services", Annex 1: Glossary of technical terms used in the Manual, Paris, 2001
Organisation for Economic Co-operation and Development (OECD), "Measuring Capital - OECD Manual: Measurement of Capital Stocks, Consumption of Fixed Capital and Capital Services", Annex 1: Glossary of technical terms used in the Manual, Paris, 2001
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