Question $16$

An entity is developing a new production process. During $20$X$1-20$X$2,$ expenditure incurred was $1,000,$ of which $900$ was incurred before $1^{st}$ March, $20x2$ and $100$ was incurred between $1^{st}$ March, $202$ and ${31}^{st}$ March, $20$X$2.$ The entity is able to demonstrate that at $1^{st}$ March, $20$X$2,$ the production process met the criteria for recognition as an intangible asset. The recoverable amount of the knowhow embodied in the process $($including future cash outflows to complete the process before it is available for use$)$ is estimated to be $500.$

During $202-203,$ expenditure incurred is $2,000.$ At the end of $203,$ the recoverable amount of the know$-$how embodied in the process $($including future cash outflows to complete the process before it is available for use$)$ is estimated to be $1,900.$

Explain the accounting treatment of expenditure incurred in $201-202$ and $202-203$ as per relevant Ind AS$.$