7. Double Declining Depreciation

The double declining balance depreciation differs from the declining balance in that it uses a coefficient for calculating the depreciation. The coefficient, defined in 'Depreciation Template. Open for Declining Depreciation' (FAS025), is based on acquisition date and asset life span. If the number of years for the life span is higher than 0 when calculating the depreciation in (FAS010), a coefficient is automatically searched for. The formula is:

(1/number of years) x the coefficient=depreciation

The double declining method is a fiscally accepted method in many countries.