How does the double declining balance method of accounting calculate depreciation?

The double declining balance method is a method of calculating depreciation of fixed assets based on the net book value of fixed assets at the beginning of each period (book balance of fixed assets minus accumulated depreciation) and double the straight-line depreciation rate without considering the salvage value of fixed assets.

The formula is as follows:

(1) Annual depreciation rate = 2 ÷ estimated depreciable life × 100%, and annual depreciation = net book value of fixed assets at the beginning of the period × annual depreciation rate.

(2) Monthly depreciation rate = annual depreciation rate ÷ 12

(3) Monthly depreciation amount = net depreciated value of fixed assets at the beginning of the year × monthly depreciation rate

(4) Net book value of fixed assets at the beginning of the year = original value of fixed assets - accumulated depreciation

Fixed assets subject to the double-declining-balance method should be depreciated over a number of years before the expiration of depreciation years of the fixed assets (when the depreciation using the straight-line method is greater than or equal to the depreciation using the double-declining-balance method), the net book value of the fixed assets less the estimated net salvage value should be amortized equally.