declining-balance method of depreciation definition

A depreciation technique where a constant percentage (such as 200%, 150%, or 125%) is applied to the book value of an asset. (As an asset is depreciated its book value declines.) This technique results in greater depreciation in the early years of an asset's life and smaller depreciation in the later years of the asset's life (compared to constant depreciation amounts using straight-line depreciation). To learn more, see Explanation of Depreciation.