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TeachMeFinance.com - explain declining balance depreciation method declining balance depreciation method -- a depreciation method that converts the cost of an asset into a periodic expense. The method permits charging larger amounts of depreciation expenses in earlier years and lesser amounts later. In calculating annual depreciation charges, a constant percentage is applied each year to the net asset after deducting the previous accumulated depreciation until the asset's value is reduced to its net residual value at the end of its useful life. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.