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In an accelerated depreciation scheme known as the declining balance method, bigger depreciation expenses are recorded in the earlier years of an asset's useful life and smaller depreciation expenses are recorded in the asset's later years.
The diminishing balance approach, sometimes referred to as the declining balance method, is the best choice for assets that eventually lose value or become obsolete. This is typically true for high-tech things like computers, cellphones, and other devices of this nature, which are typically useful at first but become less so when newer models are introduced to the market. The eventual phase-out of these assets is taken into account through an accelerated method of depreciation. The straight-line depreciation method, which is better suited for assets whose book value decreases at a constant pace throughout the course of their useful lives, is represented by the decreasing balance approach as its antithesis.
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