Nowadays, many businesses are becoming aware of the importance in recognising and protecting Intellectual Property (IP). IP can be a brand, design, invention or other kinds of creations, and can be legally owned by the business. IP can be protected through patents, trademarks, copyrights, or other rights.IP can be a valuable business asset which can be bought, owned, sold or licensed out in much the same way as other assets such as property or land.When a business owns IP or rights over an IP, the first issue that must be addressed is its protection – and such protection is possible by registering the IP. The type of protection available will depend on the nature of IP itself but commonly include Copyrights, Patents, Designs Rights and Trademarks.In most cases, the costs incurred in developing, protecting and registering your IP can be capitalised and recognised as an asset for your company, in accordance with International Financial Reporting Standards (IFRS). The tax treatment for costs incurred in relation to IP will depend on the type of protection involved. If costs relate to a patent these could be deducted for tax purposes as long as they are spread over its useful life. In the case of other types of IPs, the capital costs can be deducted as long as they are spread equally over the year in which such costs would have been incurred and the two succeeding years.