Explanation:

As financial transactions continue to evolve, new situations develop that may not have been foreseen by the existing accounting standards. When questions arise, accounting boards, such as the Financial Accounting Standards Board (FASB), the American Institute of Certified Public Accountants (AICPA), and the International Accounting Standards Board (IASB), may choose to issue an interpretation outlining the recommended practices for accounting. The IASB operates under the oversight of the International Financial Reporting Standards Foundation (IFRS).

In other cases, an entirely new standard may be issued for a class of financial transactions that did not previously exist, for example for industries that recently emerged, such as certain components of the tech sector in the last two decades. Alternatively, a standard could be updated, known as "ASU," or Accounting Standard Update, in the parlance of the FASB, if the nature of a change in a transaction is significant enough to warrant an adjustment.