Annual Report 2023

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2023 62 The United Laboratories International Holdings Limited Annual Report 2023 3. BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS AND MATERIAL ACCOUNTING POLICY INFORMATION (Continued) 3.2 Material accounting policy information (Continued) Share-based payments (Continued) Equity-settled share-based payment transactions (Continued) Shares granted to employees (Continued) The fair value of the equity-settled share-based payments determined at the grant date without taking into consideration all non-market vesting conditions is expensed on a straight-line basis over the vesting period, based on the Group’s estimate of equity instruments that will eventually vest, with a corresponding increase in equity (share-based compensation reserve). At the end of each reporting period, the Group revises its estimate of the number of equity instruments expected to vest based on assessment of all relevant non-market vesting conditions. The impact of the revision of the original estimates, if any, is recognised in profit or loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the share-based compensation reserve. When shares granted are vested, the amount previously recognised in share-based compensation reserve will be transferred to share capital and share premium. When trustee of the share award scheme purchases the Company’s shares from the open market, the consideration paid, including any directly attributable incremental costs, is deducted from total equity and is presented as treasury stock. No gain or loss is recognised on the transactions of the Company’s own shares. When the trustee transfers the Company’s granted shares to grantees upon vesting, the related costs of the granted shares vested are reversed from treasury share stock and the related expense of the granted shares vested is reversed from share-based compensation reserve. The difference arising from such transfer is debited/credited to retained profits.