I'm not sure physics really does say that. Physicists seem to believe that information is never lost - but that doesn't mean the information can be retrieved. If it's in a fragile state, then the act of measuring it might change it. Eg an electron has both a position and a momentum, but that doesn't mean you can measure it's velocity.
When you burn a document, all the matter might be transferred into the smoke, but you've rendered it into a stream of particles which is small enough to be effected by Brownian motion. Reversing the process (figuring out the initial position of each soot particle) involves knowing the position and momentum of the air molecules impacting the soot particles. In principle, you could take the current position and momentum of those particles and extrapolate backwards - but you can't actually measure that, not even in theory.
When you burn a document, all the matter might be transferred into the smoke, but you've rendered it into a stream of particles which is small enough to be effected by Brownian motion. Reversing the process (figuring out the initial position of each soot particle) involves knowing the position and momentum of the air molecules impacting the soot particles. In principle, you could take the current position and momentum of those particles and extrapolate backwards - but you can't actually measure that, not even in theory.