Price increases and operational efficiency savings more than offset higher raw material costs and are enabling the company to continue investing in growth.Currency movementsThe impact of currencies on reported sales was positive in the first half of the year and neutral in the second half reflecting the appreciation of the dollar towards the end of the year, notably against emerging market currencies.
Syngenta’s consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and, except as described in Note 2 below, with the accounting policies set out in the Syngenta Financial Report 2007.The consolidated financial statements are presented in United States dollars ($) as this is the major currency in which revenues are denominated.The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.
The most important factors contributing to the recognition of goodwill were the economies of scale that Syngenta expects to achieve in its global marketing, selling and distribution operations, research and development activities, and product supply chain by consolidating the operation of SIL with other wholly owned Indian Syngenta subsidiaries, and making greater future use of SIL as a manufacturing and research and development center for the global business.On January 31, 2007, Syngenta acquired the assets of Gromor International Corporation, which consist of peat extraction rights over certain land in Manitoba, Canada.
Impairments of available-for-sale financial assets total $37 million consisting mainly of recognition of the significant decline in the share price of Verenium (previously Diversa Corporation).Reversal of inventory step up included in cost of goods sold in 2008 consists of the reversal of inventory step up on the Zeraim Gedera acquisition.2007Syngenta incurred costs of $41 million associated with the Operational Efficiency program announced in 2004 relating to the implementation of the Crop Protection manufacturing site closures announced in 2004-2006 and the continued rationalization and relocation of Research and Technology sites announced in 2004.
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