Company: AKO-B
Filing Date: 2025-11-12
Form Type: 6-K
Source: 0001104659-25-109492
Chunk: 28

Company: ANDINA BOTTLING CO INC
Filing Date: 2025-11-12
Form: 6-K
Chunk 28
---
 using valuation methods that are considered appropriate under the circumstances. Assumptions
include the depreciated cost of recovery and recent transaction values for comparable assets, among others. These valuation techniques
require certain inputs to be estimated, including the estimation of future cash flows.

2.22.3 Allowances for doubtful accounts

The Group uses a provision matrix to calculate
expected credit losses for trade receivables. Provisions are based on due days for various groups of customer segments that have similar
loss patterns (i.e., by geography region, product type, customer type and rating, and credit letter coverage and other forms of credit
insurance).

The provision matrix is initially based on the
historically observed non-compliance rates for the Group. The Group will calibrate the matrix to adjust the historical credit loss experience
with forward-looking information. For example, if expected economic conditions (i.e., gross domestic product) are expected to deteriorate
over the next year, which can lead to more non-compliances in the industry, historical default rates are adjusted. At each closing date,
the observed historical default rates are updated and changes in prospective estimates are analyzed. The assessment of the correlation
between observed historical default rates, expected economic conditions and expected credit losses are significant estimates.

<div align='center'>23</div>

2.22.4 Useful life, residual value and impairment of property, plant, and equipment

Property, plant, and equipment are recorded at
cost and depreciated using the straight-line method over the estimated useful life of those assets. Changes in circumstances, such as
technological advances, changes to the Company’s business model, or changes in its capital strategy might modify the effective useful
lives as compared to our estimates. Whenever the Company determines that the useful life of Property, plant and equipment might be shortened,
it depreciates the excess between the net book value and the estimated recoverable amount according to the revised remaining useful life.
Factors such as changes in the planned usage of manufacturing equipment, dispensers, transportation equipment and computer software could
make the useful lives of assets shorter. The Company reviews its long-lived assets for impairment whenever events or changes in circumstances
indicate that the carrying value of any of those assets may not be recovered. The estimate of future cash flows is based, among other
factors, on certain assumptions about the expected operating profits in the future. The Company’s estimation of discounted cash
flows may differ from actual cash flows because of, among other reasons, technological changes, economic conditions, changes