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Second note in section 11.1.2 (Attribute Nodes for Literal Result Elements) reads: "The same is true of the schema-defined attributes xsi:type, xsi:nil, xsi:noNamespaceSchemaLocation, and xsi:schemaLocation. If the stylesheet is processed by a schema processor, these attributes will be recognized and interpreted by the schema processor, but they have no special meaning to the XSLT processor. The attributes are copied to the result tree in the same way as any other attribute. If the result tree is validated, the copied attributes will again be recognized and interpreted by the schema processor." The sentence "... but they have no special meaning to the XSLT processor" should be rephrased because those attributes do have a meaning when validation is requested by an XSLT processor. The second note in section 19.2.1.1 (Validation using the [xsl:]validation Attribute) reads: "If an element that is being validated has an xsi:type attribute, then the value of the xsi:type attribute will be taken into account when performing the validation...."
The sentence has been changed to read: If the stylesheet is processed by a schema processor, these attributes will be recognized and interpreted by the schema processor, but in addition the XSLT processor treats them like any other attribute on a literal result element: that is, their effective value (after expanding attribute value templates) is copied to the result tree in the same way as any other attribute.