Annual Report 2021

214 Transport International Holdings Limited 2021 Annual Report NOTES TO THE FINANCIAL STATEMENTS (Expressed in Hong Kong dollars unless otherwise indicated) 21 Equity-settled share-based transactions (continued) (c) Fair value of share options and assumptions The fair value of services received in return for share options granted is measured by reference to the fair value of share options granted. The estimate of the fair value of the share options granted is measured based on the binomial model. The contractual life of the share option is used as an input into this model. Expectations of early exercise are incorporated into the binomial model. Fair value of share options and assumptions for share options granted on 19 November 2020 Fair value at measurement date $0.5681 – $0.5819 Share price at the date of grant $15.32 Exercise price $15.32 Expected volatility 14% Option life (expressed as weighted average life used in the modelling under binomial model) 5 years Expected dividends 4.98% Risk-free interest rate (based on Hong Kong Exchange Fund Notes) 0.35% The expected volatility is based on the historic volatility and is assumed to remain unchanged during the weighted average remaining life of the share options (calculated based on the weighted average remaining life of the share options), adjusted for any expected changes to future volatility based on publicly available information. Expected dividends are based on historical dividends. Changes in the subjective input assumptions could materially affect the fair value estimate. Share options were granted under a service condition. This condition has not been taken into account in the grant date fair value measurement of the services received. There were no market conditions associated with the share option grants. 22 Accounts receivable 2021 2020 $’000 $’000 Trade and other receivables 584,076 643,978 Interest receivable 21,421 16,901 Less: loss allowance (note 22(b)) (360) (360) 605,137 660,519 All of the accounts receivable are expected to be recovered within one year.