What is the main role of interpretations and technical bulletins in accounting standards?

The primary role of interpretations and technical bulletins in accounting standards is to clarify points that may be ambiguous or unclear in existing standards. Situations may arise where the language or application of a standard is not straightforward, leading to varying interpretations by practitioners.

By providing these clarifications, interpretations and technical bulletins help ensure that all parties have the same understanding of how to apply the standards consistently. This is particularly important in the field of accounting, where precision and uniformity are crucial for reliable financial reporting. Clear guidance helps prevent misapplication of standards and enhances comparability of financial statements across different entities.

The other options address different aspects of accounting but do not capture the primary function of these clarifications. Revoking obsolete principles focuses on maintenance of standards rather than interpretation. Proposing new standards relates to the development process of standards themselves. Establishing a hierarchy of principles pertains to how principles are prioritized and does not directly address the clarifications needed in existing standards.