Company: AKO-B
Filing Date: 2025-09-29
Form Type: 6-K
Source: 0001104659-25-094135
Chunk: 22

Company: ANDINA BOTTLING CO INC
Filing Date: 2025-09-29
Form: 6-K
Chunk 22
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| - | Loans and                                                                                        
 credits are valued at cost or amortized using the effective interest rate method. Gains and      
 losses are recognized in the income statement when liabilities are disposed, as well as interest 
 accrued in accordance with the effective interest rate method.                                   |

A financial liability is disposed of when the obligation is extinguished, cancelled or expires. Where an existing financial liability is replaced by another of the same lender under substantially different conditions, or where the conditions of an existing liability are substantially modified, such exchange or modification is treated as a disposal of the original liability and the recognition of the new obligation. The difference in the values in the respective books is recognized in the statement of income.

| 2.9.3 | Offsetting financial instruments |

Financial assets and financial liabilities are offset with the corresponding net amount presenting the corresponding net amount 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