General Depreciation System - GDS
The most commonly used modified accelerated cost recovery system (MACRS) for calculating depreciation. A general depreciation system uses the declining-balance method to depreciate personal property.
Investopedia Commentary
The declining-balance method involves applying the depreciation rate against the
non-depreciated balance. For example, if an asset that costs $1,000 is depreciated at 25% each year, the deduction is $250.00 in the first year and $187.50 in the second year, and so forth.
Related Links
Appreciating Depreciation
Reading The Balance Sheet
Advanced Financial Statement Analysis
See also: Accounting, Declining Balance Method, Depreciation, Modified Accelerated Cost Recovery System - MACRS
Also spelled: GDS