Capitalising the exchange losses in the qualifying assets when the construction of the qualifying assets takes more than one accounting period?, Accounting - Auditing

[CABIJENDERKUMAR BANSAL]

We are setting up new plant which takes construction period June 2019 to December 2020. for which we have taken USD borrowing( 2% interest rate). As per AS-16, Excess of exchange loss over the hypothetical interest(INR interest rate 9%) in functional currency(INR) transfer to P&L.

Now question is it mandatory to do above treatment at year end i.e 31/03/2020 as project taking more than one accounting period or company can adopt cumulative approach and do above mention treatment when asset/project will be put to use i.e 31/12/2020.

Can company ignore treatment on 31/03/2020 for cutoff period?

In case answer is no then can we capitalized exchange loss subsequent year which do not meet criteria at year end. Or what will be the treatment if after year end there is exchange gain?

Regards