Yes, MS decoding is part of the effects package. All effects can be applied to playback or recording.
There's not much info on it in the manual, so I don't know that I'd want to try then MS decode during field recording. But for either playback or recording, there are two parameters you can set for the MS decoding: width (0-100) and level (0-120). Width of the stereo seems obvious, though I wouldn't know how the settings stack up to what it produces. And I'm not sure about level -- I'd guess overall level of the decoded signal, since I doubt it would be the level of the mid signal as that would affect width.
For the width, maybe it is 0 = 0% width = all mid, no side; and 100 = 100% = all side, no mid. I guess that would make sense, though as you change the width, you change the effective pattern of the two "virtual" decoded mics.