Why would a company use double-declining depreciation on its financial statements?

Updated 2 months, 4 weeks ago

Source: http://blog.accountingcoach.com/

Most companies will not use the double-declining balance method of depreciation on their financial statements. The reason is that it causes the company’s net income in the early years of an asset’s life to be lower than it would be under the straight-line method.

One reason for using double-declining balance depreciation on the financial statements is [...]

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