What is the typical classification for shop fittings in accounting?

Shop fittings are typically classified as Property, Plant, and Equipment (PPE) in accounting. This classification is appropriate because shop fittings refer to tangible assets that are used in the business operations to generate revenue. They are physical items such as shelves, display counters, and lighting that are integral to the retail environment.

PPE is categorized as long-term assets that are not intended for sale in the ordinary course of business but are used over a period to support various operational functions. Since shop fittings are expected to provide utility over multiple accounting periods, they fall under this category. They are recorded at their cost and are subject to depreciation, reflecting their wear and tear over time.

The other classifications mentioned do not apply to shop fittings. For instance, current liabilities are obligations that the business needs to settle within a year, while intangible assets pertain to non-physical assets like patents and trademarks. Trade receivables are amounts owed to the business from customers for goods or services sold on credit. Each of these classifications serves a different purpose and does not encompass the physical and operational nature of shop fittings.