diff --git a/index.html b/index.html
index 78e1f596..ae5c133c 100644
--- a/index.html
+++ b/index.html
@@ -2487,10 +2487,13 @@ <h3>Algorithm</h3>
               and `false` for <var>propagate</var>.</li>
           </ol>
         </li>
-        <li>Initialize two empty <a class="changed">maps</a>, <var>result</var>
+        <li id="alg-expand-initialize-vars">Initialize two empty <a class="changed">maps</a>, <var>result</var>
           <span class="changed">and <var>nests</var>.
-            Initialize <var>input type</var> to the last value of the first <a>entry</a> in <var>element</var>
+            Initialize <var>input type</var> to expansion of the last value of the first <a>entry</a> in <var>element</var>
             expanding to <code>@type</code> (if any), ordering <a>entries</a> lexicographically by key</span>.
+            Both the key and value of the matched entry are expanded using the
+            <a href="#iri-expansion">IRI Expansion algorithm</a>,
+            passing <var>active context</var>, and <code>true</code> for <var>vocab</var>.
         </li>
         <li id="alg-expand-each-key-value">
           For each <var>key</var> and <var>value</var> in <var>element</var>,
@@ -2605,7 +2608,8 @@ <h3>Algorithm</h3>
                 </li>
                 <li>If <var>expanded property</var> is <code>@value</code>:
                   <ol>
-                    <li class="changed">If <var>input type</var> is <code>@json</code>,
+                    <li id="alg-expand-type-json" class="changed">If
+                      <var>input type</var> is <code>@json</code>,
                       set <var>expanded value</var> to <var>value</var>.
                       If <a>processing mode</a> is `json-ld-1.0`,
                       an <a data-link-for="JsonLdErrorCode">invalid value object value</a>
@@ -2758,10 +2762,10 @@ <h3>Algorithm</h3>
                   <var>active property</var>, <var>value</var> for <var>element</var>,
                   <span class="changed">and the {{JsonLdOptions/frameExpansion}}
                     and {{JsonLdOptions/ordered}} flags</span>.</li>
-                <li>Unless <var>expanded value</var> is <code>null</code>,
-                  <span class="changed">and <var>expanded property</var> is `@value`,
-                    and <var>input type</var> is `@json`</span>, set
-                  the <var>expanded property</var> <a>entry</a> of <var>result</var> to
+                <li id="alg-expand-expanded-property-to-result">Unless <var>expanded value</var> is <code>null</code>,
+                  <span class="changed"><var>expanded property</var> is <code>@value</code>,
+                    and <var>input type</var> is not <code>@json</code>,</span>
+                    set the <var>expanded property</var> <a>entry</a> of <var>result</var> to
                   <var>expanded value</var>.</li>
                 <li>Continue with the next <var>key</var> from <var>element</var>.</li>
               </ol>
@@ -6942,6 +6946,11 @@ <h2>Changes since Candidate Release of 12 December 2019</h2>
       of the <a href="#expansion-algorithm">Expansion algorithm</a> to exclude
       the <var>expanded index</var> being `@none`.
       This is in response to <a href="https://github.com/w3c/json-ld-api/issues/264">Issue 264</a>.</li>
+    <li>Updated step <a href="#alg-expand-initialize-vars">12</a>
+      of the
+      <a href="#expansion-algorithm">Expansion algorithm</a>
+      <var>input type</var> to use the expanded value.
+      This is in response to <a href="https://github.com/w3c/json-ld-api/issues/269">Issue 269</a>.</li>
   </ul>
 </section>