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Facebook Inc. included the following disclosure note in an annual report: Share-Based Compensation (in part) …compensation expense related to these grants is based on the grant date fair value of the RSUs and is recognized on a straight-line basis over the applicable service period The following table summarizes the activities for our unvested RSUs for the year ended December 31 2013: Number of Shares (in thousands) Weighted Average Grant Date Fair Value Unvested at December 31, 2012 Granted Vested Forfeited 114,044 53,863 (48,050) (15,367) $21.48 31.19 17.06 25.41 Unvested at December 31, 2013 104,490 $27.80 Required 1. Assuming a four-year vesting period, how much compensation expense did Facebook report in the year ended December 31, 2014, for the restricted stock units granted during the year ended December 31 2013? (Enter your answer in millions (i.e., 10,000,000 should be entered as 10).) Compensation expense million
Expert Answer
Compute the total expense reported by incorporation F for the year ended dec31, 2014
Compute the total compensation cost of RSUs for 4 year vesting period
Total compensation cost of RSUs = fair market value per share *number of shares awarded
=31.19*53863000
=1,679,986,970
Expense allocated each year = total compensation cost of RSU/vesting period
=1679986970/4= 419,996,742.5 or420 millions
| Date | Accounts and explanation | Debit | Credit |
| 31-Dec-13 | paid in capital -restricted stock(48050000*17.06) | 819733000 | |
| Common stock(48050000*0.000006) | 288.3 | ||
| paid in capital-excess of par | 819732711.7 |
