diff --git a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/CommonDeclarationCheckers.kt b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/CommonDeclarationCheckers.kt
index 96cf1f31a53..9c8a54a99bb 100644
--- a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/CommonDeclarationCheckers.kt
+++ b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/CommonDeclarationCheckers.kt
@@ -51,6 +51,7 @@ object CommonDeclarationCheckers : DeclarationCheckers() {
             FirFunctionParameterChecker,
             FirFunctionReturnChecker,
             FirInlineDeclarationChecker,
+            FirNonMemberFunctionsChecker,
             FirSuspendLimitationsChecker,
         )
 
@@ -63,7 +64,6 @@ object CommonDeclarationCheckers : DeclarationCheckers() {
             FirMemberFunctionsChecker,
             FirDataObjectContentChecker,
             ContractSyntaxV2FunctionChecker,
-            FirTopLevelFunctionsChecker,
         )
 
     override val propertyCheckers: Set<FirPropertyChecker>
diff --git a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirTopLevelFunctionsChecker.kt b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirNonMemberFunctionsChecker.kt
similarity index 78%
rename from compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirTopLevelFunctionsChecker.kt
rename to compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirNonMemberFunctionsChecker.kt
index d10c1ceec67..663c1498fed 100644
--- a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirTopLevelFunctionsChecker.kt
+++ b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirNonMemberFunctionsChecker.kt
@@ -13,7 +13,9 @@ import org.jetbrains.kotlin.fir.analysis.checkers.FirPlatformDiagnosticSuppresso
 import org.jetbrains.kotlin.fir.analysis.checkers.context.CheckerContext
 import org.jetbrains.kotlin.fir.analysis.checkers.hasModifier
 import org.jetbrains.kotlin.fir.analysis.diagnostics.FirErrors
-import org.jetbrains.kotlin.fir.declarations.FirSimpleFunction
+import org.jetbrains.kotlin.fir.containingClassLookupTag
+import org.jetbrains.kotlin.fir.declarations.FirFunction
+import org.jetbrains.kotlin.fir.declarations.FirPropertyAccessor
 import org.jetbrains.kotlin.fir.declarations.utils.hasBody
 import org.jetbrains.kotlin.fir.declarations.utils.isExpect
 import org.jetbrains.kotlin.fir.declarations.utils.isExternal
@@ -22,10 +24,11 @@ import org.jetbrains.kotlin.lexer.KtTokens
 val FirSession.platformDiagnosticSuppressor: FirPlatformDiagnosticSuppressor? by FirSession.nullableSessionComponentAccessor()
 
 // See old FE's [DeclarationsChecker]
-object FirTopLevelFunctionsChecker : FirSimpleFunctionChecker() {
-    override fun check(declaration: FirSimpleFunction, context: CheckerContext, reporter: DiagnosticReporter) {
-        // Only report on top level callable declarations
-        if (context.containingDeclarations.size > 1) return
+object FirNonMemberFunctionsChecker : FirFunctionChecker() {
+    override fun check(declaration: FirFunction, context: CheckerContext, reporter: DiagnosticReporter) {
+        if (declaration.containingClassLookupTag() != null || declaration is FirPropertyAccessor) {
+            return
+        }
 
         val source = declaration.source ?: return
         if (source.kind is KtFakeSourceElementKind) return
diff --git a/compiler/testData/diagnostics/tests/controlFlowAnalysis/kt2334.fir.kt b/compiler/testData/diagnostics/tests/controlFlowAnalysis/kt2334.fir.kt
deleted file mode 100644
index 8c1a5ae4aea..00000000000
--- a/compiler/testData/diagnostics/tests/controlFlowAnalysis/kt2334.fir.kt
+++ /dev/null
@@ -1,5 +0,0 @@
-//KT-2334 An error 'local function without body' is not reported
-
-fun foo() {
-    fun bar()
-}
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/controlFlowAnalysis/kt2334.kt b/compiler/testData/diagnostics/tests/controlFlowAnalysis/kt2334.kt
index 4801d17d73f..2fa3b38a04f 100644
--- a/compiler/testData/diagnostics/tests/controlFlowAnalysis/kt2334.kt
+++ b/compiler/testData/diagnostics/tests/controlFlowAnalysis/kt2334.kt
@@ -1,3 +1,4 @@
+// FIR_IDENTICAL
 //KT-2334 An error 'local function without body' is not reported
 
 fun foo() {
diff --git a/compiler/testData/diagnostics/tests/functionAsExpression/WithoutBody.fir.kt b/compiler/testData/diagnostics/tests/functionAsExpression/WithoutBody.fir.kt
deleted file mode 100644
index ccb1f2408b2..00000000000
--- a/compiler/testData/diagnostics/tests/functionAsExpression/WithoutBody.fir.kt
+++ /dev/null
@@ -1,12 +0,0 @@
-// !DIAGNOSTICS: -UNUSED_PARAMETER
-
-annotation class ann
-val bas = fun ()
-
-fun bar(a: Any) = fun ()
-
-fun outer() {
-    bar(fun ())
-    bar(l@ fun ())
-    bar(@ann fun ())
-}
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/functionAsExpression/WithoutBody.kt b/compiler/testData/diagnostics/tests/functionAsExpression/WithoutBody.kt
index a80a8ac283e..044752ac555 100644
--- a/compiler/testData/diagnostics/tests/functionAsExpression/WithoutBody.kt
+++ b/compiler/testData/diagnostics/tests/functionAsExpression/WithoutBody.kt
@@ -1,3 +1,4 @@
+// FIR_IDENTICAL
 // !DIAGNOSTICS: -UNUSED_PARAMETER
 
 annotation class ann