Historic facts and consistent method
The company has a 31 December year-end and USD functional currency. Qualifying R&R is US$100,000/80,000/75,000 for YA 2019/2020/2021, with illustrative S$1.2/1.3/1.4 per US$1, total US$255,000. The source dated 16 July 2021 uses an S$300,000 three-year cap. It requires the chosen method consistently across years and other capped expenditure. Rates are expressly illustrative, not actual MAS rates or today’s currency quote; the historic cap framework should not be restated as an undated current limit.
Method A: lock the cap in functional currency
Convert S$300,000 in the first YA at 1.2 to US$250,000 and track that fixed USD cap. Deduct US$100,000 in 2019, carrying US$150,000; deduct US$80,000 in 2020, carrying US$70,000. Restrict 2021 spending to US$70,000 although US$75,000 was incurred. The balance then becomes nil; later-year exchange movements do not recalculate the original USD cap under this method.
Method B: retain the cap in Singapore dollars
Track S$300,000 and convert each year’s spending at that year’s average. 2019 uses S$120,000, leaving S$180,000; 2020 uses S$104,000, leaving S$76,000. In 2021 convert that balance at 1.4: US$54,286 as rounded in the source, restricted to S$76,000, then nil. Unlike A’s US$70,000 final claim, B’s final claim uses the last-year rate on the remaining S$ cap. This explains why mixing methods between years would distort utilisation.
Official source
This article independently explains the substantive contents of the official PDF, including the relevant conditions, procedures and annexes. The linked document remains the authoritative source for its original wording, and later changes should be checked separately.
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