Company: AKO-B
Filing Date: 2025-05-07
Form Type: 6-K
Source: 0001104659-25-045391
Chunk: 27

Company: ANDINA BOTTLING CO INC
Filing Date: 2025-05-07
Form: 6-K
Chunk 27
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 because of, among other reasons, technological changes, economic conditions, changes in the business
model, or changes in operating profit. If the sum of the projected discounted cash flows (excluding interest) is less than the carrying
amount of the asset, the asset shall be written off to its estimated recoverable value.

| 2.22.5 | Contingent liabilities |

Provisions for litigation and other contingencies
are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow
of economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognized as a provision is the best
estimate of the consideration required to settle the current obligation at the date of issuance of the financial statements, considering
the risks and uncertainties surrounding the obligation. When a provision is measured using estimated cash flows to settle the current
obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material). The
accrual of the discount is recognized as a finance cost. Incremental legal costs expected to be incurred in settling the legal claim are
included in the measurement of the provision.

Provisions are reviewed at the end of each reporting
period and are adjusted to reflect the current best estimate. If it is no longer probable that an outflow of economic benefits will be
required to settle the obligation, the provision is reversed.

A contingent liability does not imply the recognition
of a provision. Legal costs expected to be incurred in defending the legal claim are recognized in profit or loss when incurred.

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| 2.22.6. | Employee benefits |

The Company records a liability regarding indemnities
for years of service that will be paid to employees in accordance with individual and collective agreements subscribed with employees,
which is recorded at actuarial value in accordance with IAS 19 “Employee Benefits”. At year-end there were no modifications
to the agreements.

Results from updated actuarial variables are recorded
within other comprehensive income in accordance with IAS 19.

Additionally, the Company has retention plans
for some officers, which have a provision pursuant to the guidelines of each plan. These plans grant the right to certain officers to
receive a cash payment on a certain date once they have fulfilled the required years of service.

The Company and its subsidiaries have recorded
a provision to account for the