What is a FASB Interpretation?

A FASB Interpretation is an official issuance of the Financial Accounting Standards Board (FASB). This document provides additional information about a previously-issued accounting standard, stating how it should be applied; it is essentially explanatory. An interpretation is considered to be part of generally accepted accounting principles.

FASB Interpretations are no longer issued. Instead, the FASB issues Accounting Standard Updates, which represent amendments to its Accounting Standard Codification.

Examples of FASB Interpretations

Here are several examples of FASB Interpretations:

FIN 21, Accounting for Leases in a Business Combination. Provides guidance on accounting for lease obligations when a business combination occurs.
FIN 28, Accounting for Amortization of Discounts or Premiums on Debt Securities. Clarifies the treatment of discounts or premiums on debt securities and their amortization.
FIN 31, Treatment of Loan Origination Fees and Cost. Provides rules for the recognition and deferral of fees and costs associated with loan origination.
FIN 39, Offsetting of Amounts Related to Certain Contracts. Clarifies the conditions under which amounts due from the same counterparty can be offset in the financial statements.
FIN 44, Accounting for Certain Transactions Involving Stock Compensation. Provides clarification on issues related to stock-based compensation plans.
FIN 45, Guarantor’s Accounting and Disclosure Requirements for Guarantees. Specifies the recognition and disclosure requirements for guarantees issued by a company.
FIN 46(R), Consolidation of Variable Interest Entities. Clarifies when a company should consolidate another entity based on variable interests rather than voting interests.
FIN 48, Accounting for Uncertainty in Income Taxes. Provides guidance on how to account for and disclose uncertain tax positions in financial statements.