A disclosure document is a legal document that is written in accordance with the law. Investment corporations work within the law. Putting untruthful content in a disclosure document illegal because it misleads the interested parties like financiers, investors and authorities. However, corporations may leverage on the loopholes within the legal framework to omit critical information in a disclosure document.
I do believe that corporations tell the truth in their disclosure forms. Now this is what they legally have to state. This means it should be read carefully and nothing not explicitly stated should not be assumed as fact. Now the question if they have a moral responsibility for fully going into all the details is a separate question. That question however goes beyond the scope of do corporations tell the truth in their disclosures
Anyone who rely on statutory disclosure to decide which corporations or more important which investment vehicle to invest in is an idiot. Statutory disclosure was introduced to provide trial lawyers and the government with a mean to shake down corporations, not a means to determine if a corporation is viable. My advised is to learn to think for yourself, educate yourself and use corporate statutory disclosures to compare the results reported by the company are in line with your expectations.
Technically, corporations are legally required to be "truthful" in their disclosure documents. However, there are a multitude of ways to present correct facts in a potentially misleading way, and many companies unfortunately exploit this to misrepresent their information. Of particular note are the nuances of financial reporting, which allow for a plethora of ways to present financial information, including footnotes, separate supplemental charts, and any number of other methods of separating items from standard financial statements.
Corporate investing is a rip off because corporations do not tell the truth in their disclosures. Big companys do whatever it takes to make money and that really is a shame.They hide the very important things from investors and consumers. I dont think that anything will ever be done about that today or any time in the near future