diff --git a/js/js.translator/src/org/jetbrains/k2js/translate/expression/InnerDeclarationTranslator.java b/js/js.translator/src/org/jetbrains/k2js/translate/expression/InnerDeclarationTranslator.java
new file mode 100644
index 00000000000..30a1cc0fc53
--- /dev/null
+++ b/js/js.translator/src/org/jetbrains/k2js/translate/expression/InnerDeclarationTranslator.java
@@ -0,0 +1,85 @@
+/*
+ * Copyright 2010-2012 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.jetbrains.k2js.translate.expression;
+
+import com.google.dart.compiler.backend.js.ast.*;
+import org.jetbrains.annotations.NotNull;
+import org.jetbrains.annotations.Nullable;
+import org.jetbrains.jet.lang.descriptors.DeclarationDescriptor;
+import org.jetbrains.jet.lang.descriptors.ValueParameterDescriptor;
+import org.jetbrains.jet.lang.descriptors.VariableDescriptor;
+import org.jetbrains.jet.lang.psi.JetElement;
+import org.jetbrains.k2js.translate.context.TranslationContext;
+import org.jetbrains.k2js.translate.utils.closure.ClosureContext;
+import org.jetbrains.k2js.translate.utils.closure.ClosureUtils;
+
+import java.util.Collections;
+import java.util.List;
+
+abstract class InnerDeclarationTranslator {
+    protected final ClosureContext closureContext;
+    protected final TranslationContext context;
+    protected final JsFunction fun;
+
+    public InnerDeclarationTranslator(@NotNull JetElement declaration,
+            @NotNull DeclarationDescriptor descriptor,
+            @NotNull TranslationContext context,
+            @NotNull JsFunction fun) {
+        this.context = context;
+        closureContext = ClosureUtils.captureClosure(context.bindingContext(), declaration, descriptor);
+        this.fun = fun;
+    }
+
+    protected List<ValueParameterDescriptor> getValueParameters() {
+        return Collections.emptyList();
+    }
+
+    @NotNull
+    public abstract JsExpression translate(@NotNull JsNameRef nameRef);
+
+    protected JsExpression translate(@NotNull JsNameRef nameRef, @Nullable JsExpression self) {
+        if (closureContext.getDescriptors().isEmpty() && self == JsLiteral.NULL) {
+            return createExpression(nameRef, self);
+        }
+        else {
+            JsInvocation invocation = createInvocation(nameRef, self);
+            addCapturedValueParameters(invocation);
+            return invocation;
+        }
+    }
+
+    protected abstract JsExpression createExpression(JsNameRef nameRef, JsExpression self);
+
+    protected abstract JsInvocation createInvocation(JsNameRef nameRef, JsExpression self);
+
+    private void addCapturedValueParameters(JsInvocation bind) {
+        if (closureContext.getDescriptors().isEmpty()) {
+            return;
+        }
+
+        List<JsExpression> expressions = getCapturedValueParametersList(bind);
+        for (VariableDescriptor variableDescriptor : closureContext.getDescriptors()) {
+            JsName name = context.getNameForDescriptor(variableDescriptor);
+            fun.getParameters().add(new JsParameter(name));
+            expressions.add(name.makeRef());
+        }
+    }
+
+    protected List<JsExpression> getCapturedValueParametersList(JsInvocation invocation) {
+        return invocation.getArguments();
+    }
+}
diff --git a/js/js.translator/src/org/jetbrains/k2js/translate/expression/InnerFunctionTranslator.java b/js/js.translator/src/org/jetbrains/k2js/translate/expression/InnerFunctionTranslator.java
new file mode 100644
index 00000000000..c404a87303b
--- /dev/null
+++ b/js/js.translator/src/org/jetbrains/k2js/translate/expression/InnerFunctionTranslator.java
@@ -0,0 +1,100 @@
+/*
+ * Copyright 2010-2012 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.jetbrains.k2js.translate.expression;
+
+import com.google.dart.compiler.backend.js.ast.*;
+import org.jetbrains.annotations.NotNull;
+import org.jetbrains.jet.lang.descriptors.ClassDescriptor;
+import org.jetbrains.jet.lang.descriptors.FunctionDescriptor;
+import org.jetbrains.jet.lang.descriptors.ValueParameterDescriptor;
+import org.jetbrains.jet.lang.psi.JetElement;
+import org.jetbrains.k2js.translate.context.TranslationContext;
+
+import java.util.List;
+
+class InnerFunctionTranslator extends InnerDeclarationTranslator {
+    private final FunctionDescriptor descriptor;
+
+    public InnerFunctionTranslator(@NotNull JetElement declaration,
+            @NotNull FunctionDescriptor descriptor,
+            @NotNull TranslationContext context,
+            @NotNull JsFunction fun) {
+        super(declaration, descriptor, context, fun);
+        this.descriptor = descriptor;
+    }
+
+    public boolean isLocalVariablesAffected() {
+        return closureContext.isLocalVariablesAffected();
+    }
+
+    @Override
+    protected List<ValueParameterDescriptor> getValueParameters() {
+        return descriptor.getValueParameters();
+    }
+
+    @Override
+    @NotNull
+    public JsExpression translate(@NotNull JsNameRef nameRef) {
+        JsExpression result = translate(nameRef, getThis());
+        FunctionTranslator.addParameters(fun.getParameters(), descriptor, context);
+        return result;
+    }
+
+    @Override
+    protected JsExpression createExpression(JsNameRef nameRef, JsExpression self) {
+        return nameRef;
+    }
+
+    @Override
+    protected JsInvocation createInvocation(JsNameRef nameRef, JsExpression self) {
+        JsInvocation bind = new JsInvocation(context.namer().kotlin(getBindMethodName()));
+        bind.getArguments().add(nameRef);
+        bind.getArguments().add(self);
+        return bind;
+    }
+
+    @NotNull
+    private JsExpression getThis() {
+        ClassDescriptor outerClassDescriptor = closureContext.outerClassDescriptor;
+        if (outerClassDescriptor != null && !descriptor.getReceiverParameter().exists()) {
+            return JsLiteral.THIS;
+        }
+
+        return JsLiteral.NULL;
+    }
+
+    @NotNull
+    private String getBindMethodName() {
+        if (closureContext.getDescriptors().isEmpty()) {
+            return getValueParameters().isEmpty() ? "b3" : "b4";
+        }
+        else {
+            return getValueParameters().isEmpty() ? (closureContext.getDescriptors().size() == 1 ? "b0" : "b1") : "b2";
+        }
+    }
+
+    @Override
+    protected List<JsExpression> getCapturedValueParametersList(JsInvocation invocation) {
+        if (closureContext.getDescriptors().size() > 1 || !getValueParameters().isEmpty()) {
+            JsArrayLiteral values = new JsArrayLiteral();
+            invocation.getArguments().add(values);
+            return values.getExpressions();
+        }
+
+        return super.getCapturedValueParametersList(invocation);
+    }
+}
diff --git a/js/js.translator/src/org/jetbrains/k2js/translate/expression/InnerObjectTranslator.java b/js/js.translator/src/org/jetbrains/k2js/translate/expression/InnerObjectTranslator.java
new file mode 100644
index 00000000000..d9f8a66bb03
--- /dev/null
+++ b/js/js.translator/src/org/jetbrains/k2js/translate/expression/InnerObjectTranslator.java
@@ -0,0 +1,55 @@
+/*
+ * Copyright 2010-2012 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.jetbrains.k2js.translate.expression;
+
+import com.google.dart.compiler.backend.js.ast.*;
+import org.jetbrains.annotations.NotNull;
+import org.jetbrains.jet.lang.descriptors.ClassDescriptor;
+import org.jetbrains.jet.lang.psi.JetClassOrObject;
+import org.jetbrains.k2js.translate.context.TraceableThisAliasProvider;
+import org.jetbrains.k2js.translate.context.TranslationContext;
+
+class InnerObjectTranslator extends InnerDeclarationTranslator {
+    public InnerObjectTranslator(@NotNull JetClassOrObject declaration, @NotNull ClassDescriptor descriptor, @NotNull TranslationContext context, @NotNull JsFunction fun) {
+        super(declaration, descriptor, context, fun);
+    }
+
+    @Override
+    protected JsExpression createExpression(JsNameRef nameRef, JsExpression self) {
+        return createInvocation(nameRef, self);
+    }
+
+    @Override
+    @NotNull
+    public JsExpression translate(@NotNull JsNameRef nameRef) {
+        return super.translate(nameRef, thisAliasProvider().getRefIfWasCaptured());
+    }
+
+    private TraceableThisAliasProvider thisAliasProvider() {
+        return ((TraceableThisAliasProvider) context.thisAliasProvider());
+    }
+
+    @Override
+    protected JsInvocation createInvocation(JsNameRef nameRef, JsExpression self) {
+        JsInvocation invocation = new JsInvocation(nameRef);
+        if (thisAliasProvider().wasThisCaptured()) {
+            fun.getParameters().add(new JsParameter(((JsNameRef) self).getName()));
+            invocation.getArguments().add(JsLiteral.THIS);
+        }
+        return invocation;
+    }
+}