Finance - SOPs

This section outlines the Finance processes that apply to the organization excluding school fees collections. It includes Finance Policies such as the useful lives of assets and accounting treatment.

Authored by Shu Ling (07 Apr 2025)

Asset Useful Lives Policy

The following asset useful lives are to be adopted:

Asset Type	Useful Life
Computers & Software	1 year
Office Equipment	1 year
Renovation	5 years or until the end of the rental lease period, whichever is earlier
Vehicles	10 years or the remaining Certificate of Entitlement (COE) lifespan

[MBAD- compliant - updated 7/5/25]

Note: Useful lives for existing assets at Maplebear Holdings schools may vary from the above due to historical application.

*Restatement of prior year numbers are required when there is a change in the useful lives of assets, hence, please adopt these new useful lives only when the existing assets are fully depreciated or when a new school centre is opened.

Cost Recharge Policy Within Group Companies

Within the group of companies, certain costs may be centrally paid by a designated entity (e.g., HQ or lead school) for efficiency and bulk purchasing benefits. These costs may then be recharged to the relevant schools.

Recharge Threshold

Criteria	Policy
Invoice amount ≥ SGD 1,000	Cost is considered material; re-bill required
Invoice amount < SGD 1,000	Cost is not considered material; no re-bill

• The SGD 1,000 threshold is applied per invoice basis, not cumulative.

• This policy is designed to minimize administrative burden for low-value transactions.

Small Value Assets Policy

Small value assets are individual fixed assets with a purchase cost not exceeding SGD 3,000 (excluding GST) per unit.

Capitalization vs Expense Treatment

Asset Cost (per unit)	Accounting Treatment
≤ SGD 3,000	Expensed immediately
> SGD 3,000	Capitalized as a fixed asset and depreciated over useful life

• This threshold applies to tangible assets such as office furniture, equipment, and IT devices.

• The SGD 3,000 limit is applied per individual item, not on the total invoice or bundle.

• XERO General Ledger Code : Hardware Expense

• Rationale:

  • Streamline the capitalization process

  • Reduce administrative burden for low-value assets

  • Ensure compliance with materiality principles under financial reporting standards