--- a/spec/latest/json-ld-api/index.html	Fri Feb 15 17:27:14 2013 +0100
+++ b/spec/latest/json-ld-api/index.html	Fri Feb 15 12:48:38 2013 -0500
@@ -2854,11 +2854,13 @@
 <p>
 If no <tref>term</tref> was found that could be used to compact the
 <tref>IRI</tref>, then an attempt is made to find a <tref>compact IRI</tref>
-to use. If there is no appropriate <tref>compact IRI</tref>, then
-the <tref title="active context">active context's</tref>
-<tref>vocabulary mapping</tref> is used. Finally, if the <tref>IRI</tref>
-still could not be compacted, transform it to a <tref>relative IRI</tref>
-using the document's base <tref>IRI</tref>.
+to use. If there is no appropriate <tref>compact IRI</tref>, then, if
+the <tref>IRI</tref> is relative to
+<tref title="active context">active context's</tref>
+<tref>vocabulary mapping</tref>, then it is used. Otherwise, transform it to
+a <tref>relative IRI</tref> using the document's base <tref>IRI</tref>.
+Finally, if the <tref>IRI</tref> still could not be compacted, return it
+as is.
 </p>
 
 </section>
@@ -3132,9 +3134,13 @@
     </ol>
   </li>
   <li>
-    Finally, transform <em>iri</em> to a <tref>relative IRI</tref> using
+    If <em>vocabRelative</em> is <tref>false</tref> then
+    transform <em>iri</em> to a <tref>relative IRI</tref> using
     the document's base <tref>IRI</tref>.
   </li>
+  <li>
+    Finally, return <em>iri</em> as is.
+  </li>
 </ol>
 
 </section>