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how the full disclosure principal is supported by the accounting standards ?

how the full disclosure principal is supported by the accounting standards ?
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As operate IAS 1 entities are required to make full disclosure of their financial performance and position in the financial statements on annual reports every year. The reason for this full disclosures is that stakeholders use this information to make their decision on transacting with the business entity. Hence incomplete or incorrect disclosures will be giving a misleading information and hence stakeholders can sue the company for making decisions based on this wrong information. They may also end up making losses and incurring damages by relying the information provided in the statements.

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