Company: AKO-B
Filing Date: 2025-05-07
Form Type: 6-K
Source: 0001104659-25-045391
Chunk: 13

Company: ANDINA BOTTLING CO INC
Filing Date: 2025-05-07
Form: 6-K
Chunk 13
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 useful
life, it is recognized separately and tested annually or more frequently if events or changes in circumstances indicate a potential impairment.
The carrying value of goodwill is compared to the recoverable amount, which is the higher of value in use and the fair value less costs
to sell. Any impairment is recognized immediately as an expense and is not subsequently reversed.

Goodwill is carried at cost less accumulated impairment
losses.

Gains and losses on the sale of an entity include
the carrying amount of goodwill related to that entity.

Goodwill is assigned to each cash generating unit
(CGU) or group of cash-generating units, from where it is expected to benefit from the synergies arising from the business combination.
Such CGUs or groups of CGUs represent the lowest level in the organization at which goodwill is monitored for internal management purposes.

| 2.7.2 | Distribution rights |

Distribution rights are contractual rights to
produce and/or distribute Coca-Cola brand products and other brands in certain territories in Argentina, Brazil, Chile and Paraguay. Distribution
rights are born from the process of valuation at fair value of the assets and liabilities of companies acquired in business combinations.
Distribution rights have an indefinite useful life and are not amortized, (as they are historically permanently renewed by The Coca-Cola
Company) and therefore are subject to impairment tests on an annual basis.

| 2.7.3 | Software |

Carrying amounts correspond to internal and external
software development costs, which are capitalized once the recognition criteria in IAS 38, Intangible Assets, have been met. Their
accounting recognition is initially realized for their acquisition or production cost and, subsequently, they are valued at their net
cost of their corresponding accumulated amortization and of the impairment losses that, if applicable, they have experienced. The aforementioned
software is amortized within four years.

| 2.8 | Impairment of non-financial assets |

Assets that have an indefinite useful life, such
as intangibles related to distribution rights and goodwill, are not amortized and are tested annually for impairment or more frequently
if events or changes in circumstances indicate a potential impairment. Assets that are subject to amortization are tested for impairment
whenever there is an event or change in circumstances indicating that the carrying amount may not be recoverable. An impairment loss is
recognized for the amount by which the carrying value of the asset exceeds its recoverable amount. The recoverable amount is the greater
of an asset’s fair value less costs to sell or its