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Documentation for Identity Federation for AWS 1.2 – other releases are available in the Identity Federation for AWS Documentation Directory.
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_PrincipalTypesTable

Principal TypeExplanationLearn more at AWS
Federated User

Yields temporary AWS security credentials for a federated user with the Atlassian user name and an optional IAM policy (if absent, AWS applies a default)

In order to use the Federated User Principal Type, you need to Grant an IAM Group Permission to Create Temporary Credentials!

AWS Elastic Beanstalk is the only remaining service not supported by Federated User yet - use Account (IAM User) instead.

Permissions in Temporary Security Credentials for Federated Users

Grant an IAM Group Permission to Create Temporary Credentials

Account (IAM User)

Yields temporary AWS security credentials for the selected IAM user (recommended) or AWS account (disadvised) itself

Account (IAM User) does not allow to specify IAM policies or distinguish users - use Federated User for these features instead.
Permissions in Temporary Security Credentials for IAM Users