Syngenta AG (SYT)

(2) Available-for-sale financial assets

Under IAS 39, where an entity has chosen to report changes in fair value of available-for-sale financial assets in shareholders’ equity, it continues to do so even if the market value of an asset falls below cost, unless impairment is objectively evidenced by events such as default, bankruptcy or significant financial difficulty of the investee occurring or becoming probable. These events have not occurred or become probable in respect of any available-for-sale assets held by Syngenta and, accordingly, no impairment has been recorded for IFRS. However, under SFAS 115 as interpreted by SAB 59, impairment is recorded when there is a decline, which is other than temporary, in the value of an available-for-sale security with a readily determinable fair value, unless there is objective evidence that the asset can be realized in the near term at a value in excess of its current market price. Therefore, due to the decline in the market price of certain quoted available-for-sale assets to a level below their original cost, Syngenta has recorded an impairment loss of US$1 million (2003: US$3 million, 2002: US$53 million) within the US GAAP net income (2003: net income, 2002: net loss) in relation to these assets.

Gross proceeds from the sale of available-for-sale financial assets during 2004 were US$nil (2003: US$4 million, 2002: US$3 million). There were no disposals during 2004 (2003 and 2002: Gains and losses on disposal were not material).

There were no available-for-sale financial assets with unrealised losses for US GAAP at December 31, 2004.

Syngenta’s share of the unrealized losses on available-for-sale securities held by an associated company is US$nil on a post-tax basis, according to the most recent valuations available at December 31, 2004 (2003: share of unrealized losses US$2 million).