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In 9.5 we say: For a global variable or the default value of a stylesheet parameter, the expression or sequence constructor specifying the variable value is evaluated with a singleton focus based on the document node of the document containing the initial context node. We don't say what happens if the root of the tree containing the initial context node is not a document node. I propose changing "the document node of the document containing ..." to "the root node of the tree containing ...". Michael Kay previously raised at http://lists.w3.org/Archives/Member/w3c-xsl-wg/2005Oct/0041.html
At its meeting on 8 Dec 2005 the XSL WG accepted this comment and the proposed resolution. The change has been applied to the base document.