In bug #3646 I misunderstood the description of an error condition in section 4.14:

  The static context for an initializing expression includes all functions that
  are declared or imported anywhere in the Prolog, but it includes only those
  variables and namespaces that are declared or imported earlier in the Prolog
  than the variable that is being initialized. If an initializing expression
  cannot be evaluated because of a circularity (for example, it depends on a
  function that in turn depends on the value of the variable that is being
  initialized), a static error is raised [err:XQST0054].

I feel that the last sentance in the paragraph above should be given it's own paragraph, to avoid confusion arising from it's perceived association with the previous discussion on the static context for an initializing expression.