This excerpt taken from the SYT 20-F filed Mar 16, 2005.
Other change in Accounting policy Royalty income
Syngenta receives royalty income from licensing third parties to use its intellectual property. Syngenta has presented royalty income as Sales, and related royalty expense as Cost of goods sold, in these consolidated financial statements. Previously, royalty income and expense were shown within General and administrative. Royalty income was not material to Sales for previous periods and was considered incidental. However, Syngenta expects that the amount of royalty income will increase in future, and will increasingly arise in the course of Syngentas ordinary activities. For this reason, Syngenta considers that the revised income statement presentation will provide more reliable and relevant information than the presentation adopted previously. The 2002 and 2003 consolidated income statements have been adjusted to reflect the new presentation. Note 6 below discloses the amount of royalty income recognized in each period. Syngentas policy for recognizing and measuring royalty income and expense, and the amount of net income or loss in each period, have not been altered; only the presentation of royalties has changed. The consolidated balance sheet and cash flow statement are not affected.