What are the two branches of decision usefulness theories?

The two branches of decision usefulness theories are the positive theory and the normative theory. Positive theory focuses on understanding and predicting how users make decisions based on the information provided, emphasizing the actual behaviors and outcomes. In contrast, normative theory prescribes how information should be presented to optimize decision-making, often advocating for standards that enhance clarity and relevance in financial reporting. Together, these branches aim to improve the effectiveness of information for stakeholders in making informed decisions.