Company: AKO-B
Filing Date: 2025-05-07
Form Type: 6-K
Source: 0001104659-25-045391
Chunk: 20

Company: ANDINA BOTTLING CO INC
Filing Date: 2025-05-07
Form: 6-K
Chunk 20
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 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, 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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