Company: AKO-B
Filing Date: 2025-02-10
Form Type: 6-K
Source: 0001104659-25-010792
Chunk: 18

Company: ANDINA BOTTLING CO INC
Filing Date: 2025-02-10
Form: 6-K
Chunk 18
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 in the statement of financial position, if:

| - | There                                                                                       
 is currently a legally enforceable right to offset the amounts recognized, and              |
| - | It                                                                                          
 is intended to liquidate them for the net amount or to realize the assets and liquidate the 
 liabilities simultaneously.                                                                 |

| 2.10 | Derivatives financial instruments 
 and hedging activities            |

The Company and its subsidiaries use derivative financial instruments to mitigate risks relating to changes in foreign currency and exchange rates associated with raw materials, and loan obligations. Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value at each closing date. Derivatives are accounted as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. The method of recognizing the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged.

| 2.10.1 | Derivative financial instruments 
 designated as cash flow hedges   |

At the inception of the transaction, the group documents the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately in the consolidated income statement within "other gains (losses).”

Amounts accumulated in equity are reclassified to profit or loss in the periods when the hedged item affects profit or loss (for example, when foreign currency denominated financial liabilities are translated into their functional currencies). The gain or loss relating to the effective portion of cross currency swaps hedging the effects of changes in foreign exchange rates are recognized in the consolidated income statement within "foreign exchange differences.” When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognized when the forecast transaction is ultimately recognized in the consolidated income statement.

| 2.10.2 | Derivative financial instruments 
 not designated for hedging       |

The fair value