In accounting, the declining balance method is an accelerated depreciation system in which larger depreciation costs are recognized in the early years of an asset’s useful life, and less depreciation is recorded in subsequent years.
This method is useful for recording the wear and tear of computers, cell phones, and other high-tech products that quickly become obsolete.
The declining balance method is the opposite of the straight-line depreciation method, which is more suitable for assets whose book value steadily declines over time.