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1. (accounting) a way of calculating the depreciation of an asset whereby one subtracts a certain percentage of its current value each year.
   "When using the declining balance method, the salvage value is not considered in determining the annual depreciation, but the book value of the asset being depreciated is never brought below its salvage value, regardless of the method used.";
   - declining balance method of depreciation

Type of: depreciation, wear and tear