Probably you already figured it out and you don't need an answer anymore, but since I had the same problem in trying to understand it, and maybe it'll be useful for someone else in the future, the answer I think is the following one.
In Ukkonen's on line construction algorithm, on page 7 you can read that:
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The string w spelled out by the transition path in STrie(T) between two explicit states s and r is represented in STree(T) as generalized transition g′(s,w) = r. To save space the string w is actually represented as a pair (k,p) of pointers (the left pointer k and the right pointer p) to T such that tk . . . tp = w. In this way the generalized transition gets form g′(s, (k, p)) = r.
Such pointers exist because there must be a suffix Ti such that the transition path for Ti in STrie(T) goes through s and r. We could select the smallest such i, and let k and p point to the substring of this Ti that is spelled out by the transition path from s to r. A transition g′(s, (k, p)) = r is called an a–transition if tk = a. Each s can have at most one a–transition for each a ∈ Σ.
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This means that we are looking for the smallest indexes k and p such that tk . . . tp = w in T
=> if there is more than one occurrence of w in T, with k and p we always reference the first one.
Now, procedure test–and–split(s,(k,p),t) tests whether or not a state with canonical reference pair (s,(k,p)) is the endpoint, that is, a state that in STrie(T i−1) would have a ti –transition. Symbol ti is given as input parameter t.
The first lines of the algorithm are the following:
procedure test–and–split(s,(k,p),t):
1. if k ≤ p then
2. let g′(s,(k′,p′)) = s′ be the t(k)–transition from s;
3. if t = t(k′+p−k+1) then return(true,s)
4. else ...
On line 1 we check if the state is implicit (that is when k <= p).
If so, then on line 2 we want to find the transition from s that starts with the character we find in pos k of T (that is tk). Note that tk must be equal to tk' but indexes k and k' can be different because we always point to the first occurrence of a string w in T (remember also that from one state there can be at most one transition that starts with character tk => so that's the correct and the only one).
Then on line 3 we check if the state referenced by the canonical reference pair (s,(k,p)) is the endpoint, that is if it has a ti -transition. The state (s,(k,p)) is the one (implicit or not) that we can reach from state s, following the tk' -transition (that is the tk-transition because k' = k) for (p - k) characters. This explains the tk′+p−k+1, where the +1 is for the next character, the one that we are checking if it is equal to t (where t = ti). In that case we reached the endpoint and we return true.
Else, starting from line 4, we split the transition g′(s,(k′,p′)) = s′ to make explicit the state (s,(k,p)) and return the new explicit state.