The temporal-Abstraction task is the task of abstracting higher-level concepts from time-stamped data in a context-sensitive manner. We have developed and implemented a formal knowledge-based framework for decomposing and solving that task that supports acquisition, maintenance, reuse, and sharing of temporal-Abstraction knowledge. We present the logical model underlying the representation and runtime formation of interpretation contexts. Interpretation contexts are relevant for abstraction of time-oriented data and are induced by input data, concluded abstractions, external events, goals of the temporal-Abstraction process, and certain combinations of interpretation contexts. Knowledge about interpretation contexts is represented as a context ontology and as a dynamic induction relation over interpretation contexts and other proposition types. Induced interpretation contexts are either basic, composite, generalized, or nonconvex. We discuss the advantages of separating explicitly interpretation-context propositions from the propositions inducing them and from the abstractions created within them.