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Critical Accounting PoliciesRevenue Recognition CriteriaIncome TaxesShare-based CompensationLoss ContingenciesBusiness CombinationsLong-lived Assets, including Goodwill and other acquired Intangible AssetsCritical Accounting PoliciesRevenue Recognition CriteriaAdvertising

Critical Accounting PoliciesRevenue Recognition CriteriaPayments and other FeesTransaction fees recorded at netDeveloper PrincipalFacebook AgentIncome TaxesProvisions for income tax consequences

Critical Accounting PoliciesShare-based CompensationPre-2011 RSUs service-based and liquidity conditionsPost-2012 RSUs service-based condition only

Loss ContingenciesProbable and reasonably estimatedReviewed quarterlyCritical Accounting PoliciesBusiness CombinationsRecorded at fair value; excess recorded as goodwillAdjustments made within 1 year; beyond 1 year recorded to earningsLong-lived Assets, Including Goodwill and other Acquired Intangible Assets Impaired or written if deemed unrecoverableRelative Valuation

Revenue Multiples(updated as of January 5, 2014)Price-to-Sales Ratio: 18.32EV-to-Sales Ratio: 17.11Relative ValuationOne of the top titans in the WebAffordabilityEPS Potential GrowthHighest EPS Ratio

(updated as of November 27, 2014)Relative ValuationValue per Monthly Active User(updated as of 3rd quarter, 2014)

Industry NameNumber of firmsPrice/SalesEV/Sales

Real Estate (General/Diversified)1110.3212.03

Biotechnology34910.2710.72

Internet software and services3306.996.99

Real Estate (Development)226.047.07

R.E.I.T.465.0332.89

Computer Software2734.434.55

Information Services714.144.40

Tobacco123.934.57

Beverage (Alcoholic)193.734.69

Financial Svcs.763.696.91

CompanyLast PriceMarket CapEPS (ttm)P/E (ttm)

Facebook77.62217.07 B1.0573.92

Google547.73368.86 B19.8127.64

Twitter41.1326.10 B-2.170.00

CompanyMarket CapMonthly Active UsersValue per User

Facebook205.51 B1.35 B152.23

Twitter31.73 B0.284 B111.73