What category of financial instruments does a company's own ordinary shares fall under?

A company's own ordinary shares are categorized as equity instruments. This classification stems from the fact that equity instruments represent ownership interest in the company. When a company issues ordinary shares, it provides shareholders with a claim on its residual assets after all liabilities have been settled. These shares not only convey ownership rights but also entitle shareholders to participate in distributions of profit, such as dividends, and to vote on significant corporate matters.

Equity instruments are distinct from financial assets and financial liabilities. Financial assets generally include claims such as cash, receivables, and investments, while financial liabilities are obligations that require the company to transfer resources, such as payables or debt. Given that a company's own shares do not represent an obligation to pay or a claim on future cash flows but rather signify a stake in the ownership and governance of the company, they are clearly classified as equity instruments.

Intangible assets, on the other hand, refer to non-physical assets like patents or trademarks and do not apply in this scenario, as ordinary shares do not fall within that category. Thus, categorizing a company's own ordinary shares as equity instruments aligns perfectly with the underlying principles of financial accounting, making it the correct answer.