b'LOS ANGELES FIRE AND POLICE PENSION SYSTEM NOTES TO FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 NOTE 3NEW ACCOUNTING STANDARDSImplementation of the following GASB statements effective beginning fiscal year 2025. EffectiveforthefiscalyearendedJune30,2025,theSystemadoptedGASBStatementNo.101, Compensated Absences, which requires the recognition of compensated absences liabilities (e.g., vacation, sick leave) when earned and expected to be used.Due to limitations in historical payroll and personnel data in the legacy payroll system, the System applied the standard prospectively. As a result, a restatement of beginning net position totaling approximately $4.59 million was recorded as of July 1, 2024, and is reflectedin the financial statements for the year ended June 30, 2025. The restatement was allocated between the Pension and HealthSubsidyPlans.Foradditionaldetails,refertoNote14RestatementofPriorPeriodFinancial Statements. Effective for the fiscal year ended June 30, 2025, the System also adopted GASB Statement No. 102, Certain Risk Disclosures. This statement requires a government to assess whether a concentration or constraint makes the primary government reporting unit or other reporting units that report a liability for revenue debt vulnerable to the risk of a substantial impact. The statement also establishes the criteria for disclosure for a concentration or a constraint. There are no known concentrations or contingencies that meet the criteria for disclosure under this standard.Recent GASB Pronouncements for Future Adoption The following GASB pronouncements have been issued and are scheduled for adoption in upcoming fiscal years. LAFPP will evaluate their potential impact as they become effective: In April 2024, the GASB issued Statement No. 103, Financial Reporting Model Improvements. This statement improves the key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a governments accountability. The requirements of this Statement are effective for fiscal years beginning after June 15, 2025. In September 2024, the GASB issued Statement No. 104, Disclosure of Certain Capital Assets. This statement requires certain types of capital assets to be disclosed separately in the capital assets note disclosures required by GASB Statement No. 34. This statement also requires additional disclosures for capital assets held for sale. The requirements of this Statement are effective for fiscal years beginning after June 15, 2025. 40 LAFPP ANNUAL REPORT 2025 25'