There are some linguistic experts have their own perception about interpreting;
"Interpreting as an expressing meaning in a way that makes it easier to understand"
(Richard Hudson)
"Interpretation is the revelation of a larger truth that lies behind any statement of fact"
"Interpretation is an educational activity which aims to reveal meanings and relationships through the use of original objects, by firsthand and by illustrative media, than simply to communicate factual information".
(Freeman Tilden)
Interpreting is not only about how to understand the language from the speaker and how to speak the audiences' language, but also about how the interpreters comprehend the topic discussed. The interpreter have to provide an interesting, entertaining and fun experience related with the topic. As explained by Freeman Tilden, there are six principles in interpreting, those are:
1. Any interpretation that does not somehow relate what is being displayed or described to something within the personality or experience of the visitor will be sterile.
2. Information, as such, is not interpretation. Interpretation is revelation based upon information. But they are entirely different things. However, all interpretation includes information.
3. Interpretation is an which combines many arts, whether the materials presented are historical, or any art is in some degree able.
4. The chief aim of is not instruction, but provocation.
5. Interpretation should aim present a whole rather than a part, and must address itself to the whole person rather any phase.
6. Interpretation addressed to children (say, up to the age of twelve) should not be a dilution of the presentation to adults, but should follow a fundamentally different approach. To be at its best, it will require a separate program.
In conclusion, if you are working with written documents, a user manual, billboards, reports filed in different language that you did not understand and you must read and understand, you need a translator. If you want to interact with people in a foreign language on the spot, you need an interpreter. Generally, in linguistics term, interpreting is revealing meaning in which readers, listeners etc. easier to understand.
Specifically, interpreting is revealing, expressing meaning or information from one language to the other language by someone or illustrative media instantaneously in order to make easier in communicate factual information.
Sources: http://www.parks.tas.gov.au/file.aspx?id=7093