diff --git a/compiler/backend/src/org/jetbrains/kotlin/codegen/MemberCodegen.java b/compiler/backend/src/org/jetbrains/kotlin/codegen/MemberCodegen.java
index 8e7c124631c..0995d1ea2d2 100644
--- a/compiler/backend/src/org/jetbrains/kotlin/codegen/MemberCodegen.java
+++ b/compiler/backend/src/org/jetbrains/kotlin/codegen/MemberCodegen.java
@@ -43,6 +43,7 @@ import org.jetbrains.kotlin.resolve.constants.ConstantValue;
 import org.jetbrains.kotlin.resolve.constants.evaluate.ConstantExpressionEvaluator;
 import org.jetbrains.kotlin.resolve.descriptorUtil.DescriptorUtilPackage;
 import org.jetbrains.kotlin.resolve.jvm.AsmTypes;
+import org.jetbrains.kotlin.resolve.source.SourcePackage;
 import org.jetbrains.kotlin.storage.LockBasedStorageManager;
 import org.jetbrains.kotlin.storage.NotNullLazyValue;
 import org.jetbrains.kotlin.types.ErrorUtils;
@@ -57,7 +58,6 @@ import java.util.*;
 import static org.jetbrains.kotlin.codegen.AsmUtil.calculateInnerClassAccessFlags;
 import static org.jetbrains.kotlin.codegen.AsmUtil.isPrimitive;
 import static org.jetbrains.kotlin.descriptors.CallableMemberDescriptor.Kind.SYNTHESIZED;
-import static org.jetbrains.kotlin.descriptors.SourceElement.NO_SOURCE;
 import static org.jetbrains.kotlin.resolve.BindingContext.VARIABLE;
 import static org.jetbrains.kotlin.resolve.jvm.AsmTypes.*;
 import static org.jetbrains.kotlin.resolve.jvm.diagnostics.DiagnosticsPackage.OtherOrigin;
@@ -322,7 +322,8 @@ public abstract class MemberCodegen<T extends JetElement/* TODO: & JetDeclaratio
         if (clInit == null) {
             MethodVisitor mv = v.newMethod(OtherOrigin(descriptor), ACC_STATIC, "<clinit>", "()V", null, null);
             SimpleFunctionDescriptorImpl clInit =
-                    SimpleFunctionDescriptorImpl.create(descriptor, Annotations.EMPTY, Name.special("<clinit>"), SYNTHESIZED, NO_SOURCE);
+                    SimpleFunctionDescriptorImpl.create(descriptor, Annotations.EMPTY, Name.special("<clinit>"), SYNTHESIZED,
+                                                        SourcePackage.toSourceElement(element));
             clInit.initialize(null, null, Collections.<TypeParameterDescriptor>emptyList(),
                               Collections.<ValueParameterDescriptor>emptyList(),
                               DescriptorUtilPackage.getModule(descriptor).getBuiltIns().getUnitType(),
diff --git a/jps-plugin/test/org/jetbrains/kotlin/jps/build/IncrementalJpsTestGenerated.java b/jps-plugin/test/org/jetbrains/kotlin/jps/build/IncrementalJpsTestGenerated.java
index 662a2a15cd6..956059104c1 100644
--- a/jps-plugin/test/org/jetbrains/kotlin/jps/build/IncrementalJpsTestGenerated.java
+++ b/jps-plugin/test/org/jetbrains/kotlin/jps/build/IncrementalJpsTestGenerated.java
@@ -305,6 +305,12 @@ public class IncrementalJpsTestGenerated extends AbstractIncrementalJpsTest {
             doTest(fileName);
         }
 
+        @TestMetadata("inlineToTopLevelVal")
+        public void testInlineToTopLevelVal() throws Exception {
+            String fileName = JetTestUtils.navigationMetadata("jps-plugin/testData/incremental/pureKotlin/inlineToTopLevelVal/");
+            doTest(fileName);
+        }
+
         @TestMetadata("inlineTwoFunctionsOneChanged")
         public void testInlineTwoFunctionsOneChanged() throws Exception {
             String fileName = JetTestUtils.navigationMetadata("jps-plugin/testData/incremental/pureKotlin/inlineTwoFunctionsOneChanged/");
diff --git a/jps-plugin/testData/incremental/pureKotlin/inlineToTopLevelVal/build.log b/jps-plugin/testData/incremental/pureKotlin/inlineToTopLevelVal/build.log
new file mode 100644
index 00000000000..5720130d7a4
--- /dev/null
+++ b/jps-plugin/testData/incremental/pureKotlin/inlineToTopLevelVal/build.log
@@ -0,0 +1,14 @@
+Cleaning output files:
+out/production/module/inline/InlinePackage$inline$*.class
+out/production/module/inline/InlinePackage.class
+End of files
+Compiling files:
+src/inline.kt
+End of files
+Cleaning output files:
+out/production/module/usage/UsagePackage$usage$*.class
+out/production/module/usage/UsagePackage.class
+End of files
+Compiling files:
+src/usage.kt
+End of files
diff --git a/jps-plugin/testData/incremental/pureKotlin/inlineToTopLevelVal/inline.kt b/jps-plugin/testData/incremental/pureKotlin/inlineToTopLevelVal/inline.kt
new file mode 100644
index 00000000000..a242c7c7b32
--- /dev/null
+++ b/jps-plugin/testData/incremental/pureKotlin/inlineToTopLevelVal/inline.kt
@@ -0,0 +1,5 @@
+package inline
+
+inline fun f(): Int {
+    return 0
+}
\ No newline at end of file
diff --git a/jps-plugin/testData/incremental/pureKotlin/inlineToTopLevelVal/inline.kt.new b/jps-plugin/testData/incremental/pureKotlin/inlineToTopLevelVal/inline.kt.new
new file mode 100644
index 00000000000..91d8140528c
--- /dev/null
+++ b/jps-plugin/testData/incremental/pureKotlin/inlineToTopLevelVal/inline.kt.new
@@ -0,0 +1,5 @@
+package inline
+
+inline fun f(): Int {
+    return 1
+}
\ No newline at end of file
diff --git a/jps-plugin/testData/incremental/pureKotlin/inlineToTopLevelVal/other.kt b/jps-plugin/testData/incremental/pureKotlin/inlineToTopLevelVal/other.kt
new file mode 100644
index 00000000000..ba9f1988a49
--- /dev/null
+++ b/jps-plugin/testData/incremental/pureKotlin/inlineToTopLevelVal/other.kt
@@ -0,0 +1,3 @@
+package usage
+
+fun other() {}
\ No newline at end of file
diff --git a/jps-plugin/testData/incremental/pureKotlin/inlineToTopLevelVal/usage.kt b/jps-plugin/testData/incremental/pureKotlin/inlineToTopLevelVal/usage.kt
new file mode 100644
index 00000000000..956c97c4cd4
--- /dev/null
+++ b/jps-plugin/testData/incremental/pureKotlin/inlineToTopLevelVal/usage.kt
@@ -0,0 +1,3 @@
+package usage
+
+val x = inline.f()
\ No newline at end of file