Don't suppose I'm going to get an answer to this before the exam on Monday, but on the plus side, guess I'll get it in good time for the retake --> If ancillary own funds are things like unpaid share capital, then the company has never actually received any cash to buy assets with. Do they show up on the asset side of the S-II balance sheet, to balance the capital on the other side? I guess they could be viewed as a loan to shareholders - is this the right idea?
Looking at the picture on page 1 of Chapter 15, the ancillary own funds should show up in either the tier 2 or tier 3 capital. So, to make the table balance, they must show up as an asset (even though we haven't received the cash yet). Good luck with the exam. Mark
