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See http://www.w3.org/TR/xpath-functions-30/#func-id The 'V' in "the typed value of the element node is equal to V" is in the text font, whereas the 'V' in "whose typed value is equal to V" is in a monospace font. It's the same in F+O 1.0. FWIW, where 'V' comes from is not explained, so it's necessary to just assume it's one of the 'candidate IDREF values' (or candidate ID values for fn:idref).
I've fixed the incorrect font. The intent here is that E and V are free variables in a definition: it's defining a function function has-id-value(E, V) { is-id(E) and data(E) eq V } Perhaps it would be clearer to the typical reader if it were done in pseudo-code rather than legalese English.
I think this is all that would be necessary: E has an ID value equal to one of the candidate IDREF values, V, where: