Question: Explain why the following is reported as a contingent liability but not recognized as a provision in the statement of financial position (balance sheet). Some

Explain why the following is reported as a contingent liability but not recognized as a provision in the statement of financial position (balance sheet).
Some leasehold properties which the group no longer requires have been sublet to third parties. If the third parties default, the group remains responsible for future rent payments. The maximum liability is £200,000.

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