This excerpt taken from the CMED 20-F filed Sep 30, 2009.
(p) Research and development, and advertising costs
Research and development and advertising costs are expensed as incurred.
In-process research and development costs acquired in business combinations and asset acquisitions are expensed as research and development expense upon acquisition and amounted to RMB nil, RMB672,000 and RMB244,872,000 (US$35,837,000) for the years ended March 31, 2007, 2008 and 2009, respectively.
Advertising costs, which are included in sales and marketing expense, amounted to RMB1,721,000, RMB1,145,000 and RMB1,625,000 (US$238,000) for the years ended March 31, 2007, 2008 and 2009, respectively.