CMFAS RES5 Balanced Scorecard & Remuneration question: specified variable income for a transaction

CMFAS RES5Balanced Scorecard & Remuneration

A representative's specified variable income for a transaction is S$1,500: S$1,000 is paid in the current quarter and S$500 is deferred and paid roughly a year later. Under FAA-N20, the deferred S$500 must be:

A Not measured again against the non-sales KPIs in the later quarter
B Re-measured against the non-sales KPIs in the quarter it is actually paid
C Forfeited automatically if the representative later scores below grade A
D Measured against the non-sales KPIs of the year it is paid, at 60%

Show the answer and explanation

Answer: A. Not measured again against the non-sales KPIs in the later quarter

Once specified variable income has been measured against the non-sales KPIs for a calendar quarter, FAA-N20 prohibits measuring it again in any other quarter. The deferred S$500 was already measured in the original measurement quarter, so it is not re-scored when paid out later.

Common mistake

Specified variable income is measured once, in the original measurement quarter; deferring payment does not trigger a fresh measurement.

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Original study material mapped to the public CMFAS RES5 syllabus. Unofficial, not endorsed by MAS or SCI. Verify figures and rules against current guidance before relying on them.