Company: AKO-B
Filing Date: 2025-05-07
Form Type: 6-K
Source: 0001104659-25-045391
Chunk: 21

Company: ANDINA BOTTLING CO INC
Filing Date: 2025-05-07
Form: 6-K
Chunk 21
---
 align='center'>19</div>

| 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 the current value with the future value of liabilities payable, using the
effective interest rate method.

General and specific borrowing costs directly
attributable to the acquisition, construction or production of qualified assets, considered as those that require a substantial period
of time in order to get ready for their forecasted use or sale, are added to the cost of those assets until the period in which the assets
are substantially ready to be used or sold.

| 2.15 | Income tax |

The Company and its subsidiaries in Chile account
for income tax according to the net taxable income calculated based on the rules in the Income Tax Law. Subsidiaries in other countries
account for income taxes according to the tax regulations of the country in which they operate.

Deferred income taxes are calculated using the
liability method on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the Consolidated
Financial Statements, using the tax rates that have been enacted or substantively enacted on the balance sheet date and are expected to
apply when the deferred income tax asset is realized, or the deferred income tax liability is settled.

Deferred income tax assets are recognized only
to the extent that it is probable that future