Company: AKO-B
Filing Date: 2025-02-10
Form Type: 6-K
Source: 0001104659-25-010792
Chunk: 19

Company: ANDINA BOTTLING CO INC
Filing Date: 2025-02-10
Form: 6-K
Chunk 19
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 of derivative financial instruments that do not qualify for hedge accounting pursuant to IFRS are immediately recognized in the income statement under "Other income and losses". The fair value of these derivatives is recorded under "other current financial assets" or "other current financial liabilities" in the statement of financial position.”

The Company does not use hedge accounting for its foreign investments.

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The Company also evaluates the existence of embedded derivatives in contracts and financial instruments as stipulated by IFRS 9 and classifies them pursuant to their contractual terms and the business model of the group. At the date of these financial statements, the Company had no embedded derivatives.

| 2.10.3 | Fair value hierarchy |

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the date of the transaction. Fair value is based on the presumption that the transaction to sell the asset or to transfer the liability takes place;

| - | In                                                                                         
 the asset or liability main market, or                                                     |
| - | In                                                                                         
 the absence of a main market, in the most advantageous market for the transaction of those 
 assets or liabilities.                                                                     |

The Company maintains assets related to foreign currency derivative contracts which were classified as Other current and non-current financial assets and Other current and non-current financial liabilities, respectively, and are accounted at fair value within the statement of financial position.

The Company uses the following hierarchy to determine and disclose the fair value of financial instruments with assessment techniques:

| Level 1: | Quote values (unadjusted) in active markets for identical assets or liabilities                          |
| Level 2: | Valuation techniques for which the lowest level variable used, which is significant for the calculation, 
 is directly or indirectly observable                                                                     |
| Level 3: | Valuation techniques for which the lowest level variable used, which is significant for the calculation, 
 is not observable.                                                                                       |

During the reporting periods there were no transfers of items between fair value measurement categories. All of which were valued during the periods using Level 2.

| 2.11 | Inventories |

Inventories are stated at the lower of cost and net realizable value. Cost is determined using the weighted average cost method. The cost of finished goods and work in progress includes raw materials, direct labor, other direct costs and manufacturing overhead (based on operating capacity) to bring the goods to marketable condition, but it excludes interest expense. Net realizable value is the