The new Conceptual Framework for Financial Reporting was released by the International Accounting Standards Board (IASB) in 2018. Assume that this standard has been formally adopted by the Australian Accounting Standards Board (AASB), effective 01 January 2020.

(a)Is the Conceptual Framework a normative or positive theory? Explain your answer in your own words, ensuring that you refer specifically to the contents of the Conceptual Framework.