Company: AKO-B
Filing Date: 2025-09-29
Form Type: 6-K
Source: 0001104659-25-094135
Chunk: 24

Company: ANDINA BOTTLING CO INC
Filing Date: 2025-09-29
Form: 6-K
Chunk 24
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 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, are 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 estimated selling price in the ordinary course of business, less applicable variable selling expenses. Spare parts and production materials are stated at the lower of cost or net realizable value.

The initial cost of inventories includes the transfer of losses and gains from cash flow hedges, related to the purchase of raw materials.

Estimates are also made for obsolescence of raw materials and finished products based on turnover and age of the related goods.

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| 2.12 | Trade accounts receivable     
 and other accounts receivable |

Trade accounts receivable and other accounts receivable are measured and recognized at the transaction price at the time they are generated less the provision for expected credit losses, pursuant to the requirements of IFRS 15, since they do not have a significant financial component, less the provision of expected credit losses. The provision for expected credit losses is made applying a value impairment model based on expected credit losses for the following 12 months. The Group applies a simplified focus for trade receivables, thereby impairment is always recorded referring to expected losses during the whole life of the asset. The carrying amount of the asset is reduced by the provision of expected credit losses, and the loss is recognized in administrative expenses in the consolidated income statement by function.

| 2.13 | Cash and cash equivalents |

Cash and cash equivalents include cash on hand, bank balances, time deposits and other short-term highly liquid and low risk of change in value investments.

| 2.14 | Other financial liabilities |

Resources obtained from financial institutions as well as the issuance of debt securities are initially recognized at fair value, net of costs incurred during the transaction. Then, liabilities are valued by accruing interests in order to equal