Answer
Interpretations (of the Financial Accounting Standards Board)- Represent extensions or modifications of existing standards.
Work Step by Step
They modify or extend existing standards. Interpretations have the same authority, and require the same votes for passage, as standards. The Accounting Principles Board (APB) also issued interpretations of its opinions. Both types of interpretations are now considered authoritative for purposes of determining GAAP (Generally Accepted Accounting Principles).
