Accounting treatment of share-based payment:

1. On each balance sheet date during the waiting period, make the following accounting entries,

Debit: administrative expenses ,

Credit: Capital reserve - other capital reserve (equity-settled share-based payment),

Employee compensation payable - share-based payment (cash-settled share-based payment).

2. Accounting entries after the vesting date are divided into two situations

1. If it is an equity-settled share-based payment with service life conditions or non-market performance conditions

Debit: bank deposits (money paid by employees at the promised price),

Capital reserve - other capital reserve (capital reserve accumulated during the waiting period),

Credit: Equity (face value),

Capital reserve—equity premium (fair value of equity shares granted—equity).

2. If it is a cash-settled share-based payment,

①The entry when the share value increases is:

Debit: Gains and losses from changes in fair value,

Loan: Employee compensation payable—share-based payment.

②The entries when shares depreciate are:

Debit: employee compensation payable - share-based payment,

Credit: gains and losses from changes in fair value.

③The entries when the actual shares are redeemed are:

Debit: employee compensation payable - share-based payment,

Credit: bank deposit.

3. Repurchase shares for employee option incentives.

1. The entries when repurchasing shares are:

Debit: treasury shares,

Credit: bank deposits.

2. On each balance sheet date during the waiting period, the employee services obtained will be included in costs and expenses based on the fair value of the equity instrument on the date of grant, and the capital reserve (other capital reserve) will be increased at the same time.

Borrow: administrative expenses.

Credit: Capital Reserve—Other Capital Reserve.

3. The entries when employees exercise their rights are:

Debit: bank deposits (money paid by employees at the promised price),

Capital reserve —Other capital reserves (capital reserves accumulated during the waiting period),

Credit: treasury shares,

Capital reserves—equity premium (crowding difference).