DLM is proprietary, it is not detailed in the G.992.3 document, although the existence of some sort of "management entity" may be occasionally mentioned. The mechanisms for reporting the downstream stats to the DSLAM are covered in G.992.3 (and perhaps also G.997.1).
I suppose it's possible that if your modem reported the wrong values, the other end wouldn't necessarily know they were wrong, although I wouldn't have thought this kind of thing would be wisespread. I am aware of an issue with the old AR7 chipset based modems on ADSL2: mine does not include SES in the ES count (I think by definition, a Severely Errored Second is also an Errored Second), in the past this resulted in occasional issues with such high error rates to result a completely unusable Internet connection, but the connection didn't drop and the DLM appeared to be completely unaware of any problem, probably because the ES count was fairly low, because it was only being included in the SES count.