Company: AKO-B
Filing Date: 2025-11-12
Form Type: 6-K
Source: 0001104659-25-109492
Chunk: 15

Company: ANDINA BOTTLING CO INC
Filing Date: 2025-11-12
Form: 6-K
Chunk 15
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 other expenses by function or other gains,
as appropriate in the statement of comprehensive income.

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2.7 Intangible assets and goodwill

2.7.1 Goodwill

Goodwill represents the excess of the acquisition
cost and non-controlling interest over the fair value of the Group's share in the net identifiable assets of the acquired subsidiary at
the acquisition date. Since goodwill is an intangible asset with an indefinite useful life, it is tested for impairment annually and measured
at its initial value less any 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