diff --git a/idea/src/org/jetbrains/jet/lang/cfg/JetControlFlowProcessor.java b/idea/src/org/jetbrains/jet/lang/cfg/JetControlFlowProcessor.java
index 92172e76d6e..45a1de09bfd 100644
--- a/idea/src/org/jetbrains/jet/lang/cfg/JetControlFlowProcessor.java
+++ b/idea/src/org/jetbrains/jet/lang/cfg/JetControlFlowProcessor.java
@@ -576,6 +576,7 @@ public class JetControlFlowProcessor {
             IElementType operationType = expression.getOperationSign().getReferencedNameElementType();
             if (operationType == JetTokens.COLON || operationType == JetTokens.AS_KEYWORD || operationType == JetTokens.AS_SAFE) {
                 value(expression.getLeft(), false, false);
+                builder.read(expression);
             }
             else {
                 visitJetElement(expression);
diff --git a/idea/src/org/jetbrains/jet/lang/resolve/ClassDescriptorResolver.java b/idea/src/org/jetbrains/jet/lang/resolve/ClassDescriptorResolver.java
index 3fc111e4325..0319a18403c 100644
--- a/idea/src/org/jetbrains/jet/lang/resolve/ClassDescriptorResolver.java
+++ b/idea/src/org/jetbrains/jet/lang/resolve/ClassDescriptorResolver.java
@@ -187,6 +187,9 @@ public class ClassDescriptorResolver {
         if (returnTypeRef != null) {
             returnType = typeResolver.resolveType(innerScope, returnTypeRef);
         }
+        else if (function.hasBlockBody()) {
+            returnType = JetStandardClasses.getUnitType();
+        }
         else {
             final JetExpression bodyExpression = function.getBodyExpression();
             if (bodyExpression != null) {
diff --git a/idea/testData/checker/FunctionReturnTypes.jet b/idea/testData/checker/FunctionReturnTypes.jet
index 3de291b3c2d..7f20a2b69e4 100644
--- a/idea/testData/checker/FunctionReturnTypes.jet
+++ b/idea/testData/checker/FunctionReturnTypes.jet
@@ -1,4 +1,4 @@
-<error>fun none()</error>
+fun none()
 
 fun unitEmptyInfer() {}
 fun unitEmpty() : Unit {}
@@ -12,7 +12,7 @@ fun unitShortNull() : Unit = null
 fun intEmpty() : Int <error>{}</error>
 fun intShortInfer() = 1
 fun intShort() : Int = 1
-fun intBlockInfer()  {1}
+//fun intBlockInfer()  {1}
 fun intBlock() : Int {1}
 
 fun blockReturnUnitMismatch() : Int {<error>return</error>}
diff --git a/idea/testData/checker/Objects.jet b/idea/testData/checker/Objects.jet
index 4837a57408e..66f21030719 100644
--- a/idea/testData/checker/Objects.jet
+++ b/idea/testData/checker/Objects.jet
@@ -8,7 +8,7 @@ namespace toplevelObjectDeclarations {
   object A : <error>Foo</error> {
     val x : Int = 2
 
-    fun test() {
+    fun test() : Int {
       return x + foo()
     }
   }
diff --git a/idea/testData/checker/UnreachableCode.jet b/idea/testData/checker/UnreachableCode.jet
index 9b88d958a92..2b6d9731365 100644
--- a/idea/testData/checker/UnreachableCode.jet
+++ b/idea/testData/checker/UnreachableCode.jet
@@ -1,59 +1,59 @@
-fun t1() {
-  return
+fun t1() : Int{
+  return 0
   <error>1</error>
 }
 
-fun t1a() {
-  return
+fun t1a() : Int {
   <error>return</error>
-  <error>1</error>
-}
-
-fun t1b() {
-  return
   <error>return 1</error>
   <error>1</error>
 }
 
-fun t1c() {
+fun t1b() : Int {
+  return 1
+  <error>return 1</error>
+  <error>1</error>
+}
+
+fun t1c() : Int {
   return 1
   <error>return</error>
   <error>1</error>
 }
 
-fun t2() {
+fun t2() : Int {
   if (1 > 2)
-    return
-  else return
+    return 1
+  else return 1
   <error>1</error>
 }
 
-fun t2a() {
+fun t2a() : Int {
   if (1 > 2) {
-    return
+    return 1
     <error>1</error>
-  } else { return
+  } else { return 1
     <error>2</error>
   }
   <error>1</error>
 }
 
-fun t3() {
+fun t3() : Any {
   if (1 > 2)
     return 2
   else return ""
   <error>1</error>
 }
 
-fun t4(a : Boolean) {
+fun t4(a : Boolean) : Int {
   do {
-    return
+    return 1
   }
   while (<error>a</error>)
   <error>1</error>
 }
 
-fun t4break(a : Boolean) {
+fun t4break(a : Boolean) : Int {
   do {
     break
   }
@@ -61,24 +61,24 @@ fun t4break(a : Boolean) {
   1
 }
 
-fun t5() {
+fun t5() : Int {
   do {
-    return
+    return 1
     <error>2</error>
   }
   while (<error>1 > 2</error>)
   <error>1</error>
 }
 
-fun t6() {
+fun t6() : Int {
   while (1 > 2) {
-    return
+    return 1
     <error>2</error>
   }
   1
 }
 
-fun t6break() {
+fun t6break() : Int {
   while (1 > 2) {
     break
     <error>2</error>
@@ -86,25 +86,25 @@ fun t6break() {
   1
 }
 
-fun t7(b : Int) {
+fun t7(b : Int) : Int {
   for (i in 1..b) {
-    return
+    return 1
     <error>2</error>
   }
   1
 }
 
-fun t7break(b : Int) {
+fun t7break(b : Int) : Int {
   for (i in 1..b) {
-    return
+    return 1
     <error>2</error>
   }
   1
 }
 
-fun t7() {
+fun t7() : Int {
   try {
-    return
+    return 1
     <error>2</error>
   }
   catch (e : Any) {
@@ -113,13 +113,13 @@ fun t7() {
   1 // this is OK, like in Java
 }
 
-fun t8() {
+fun t8() : Int {
   try {
-    return
+    return 1
     <error>2</error>
   }
   catch (e : Any) {
-    return
+    return 1
     <error>2</error>
   }
   <error>1</error>
@@ -130,12 +130,12 @@ fun blockAndAndMismatch() : Boolean {
   <error>true</error>
 }
 
-fun tf() {
-  try {<error>return</error>} finally{return}
+fun tf() : Int {
+  try {<error>return 1</error>} finally{return 1}
   <error>1</error>
 }
 
-fun failtest(a : Int) {
+fun failtest(a : Int) : Int {
   <error>if (fail() || true) {
 
   }</error>
diff --git a/idea/testData/checker/When.jet b/idea/testData/checker/When.jet
index 7e71b08b5b3..34d83e363a5 100644
--- a/idea/testData/checker/When.jet
+++ b/idea/testData/checker/When.jet
@@ -1,4 +1,4 @@
-fun foo() {
+fun foo() : Int {
     val s = ""
     val x = 1
     when (x) {
diff --git a/idea/testData/codegen/classes/inheritedInnerClass.jet b/idea/testData/codegen/classes/inheritedInnerClass.jet
index 1ea358a6ccf..54a7b4bb78c 100644
--- a/idea/testData/codegen/classes/inheritedInnerClass.jet
+++ b/idea/testData/codegen/classes/inheritedInnerClass.jet
@@ -8,7 +8,7 @@ class Outer() {
   public val foo: InnerBase? = InnerDerived()
 }
 
-fun box() {
+fun box() : String {
   val o = Outer()
   return if (o.foo === null) "fail" else "OK"
 }
diff --git a/idea/testData/codegen/classes/inheritedMethod.jet b/idea/testData/codegen/classes/inheritedMethod.jet
index 82474b9df72..1005cd31be7 100644
--- a/idea/testData/codegen/classes/inheritedMethod.jet
+++ b/idea/testData/codegen/classes/inheritedMethod.jet
@@ -6,7 +6,7 @@ class Bar(): Foo {
   fun test(): String = xyzzy()
 }
 
-fun box() {
+fun box() : String {
   val bar = Bar()
   val f = bar.test()
   return if (f == "xyzzy") "OK" else "fail"
diff --git a/idea/testData/codegen/classes/initializerBlockDImpl.jet b/idea/testData/codegen/classes/initializerBlockDImpl.jet
index 9b8f0af361a..aa3d227c80f 100644
--- a/idea/testData/codegen/classes/initializerBlockDImpl.jet
+++ b/idea/testData/codegen/classes/initializerBlockDImpl.jet
@@ -13,7 +13,7 @@ class World() {
   val foo = Item()
 }
 
-fun box() {
+fun box() : String {
   val w = World()
   if (w.items.size() != 1) return "fail"
   return "OK"
diff --git a/idea/testData/codegen/classes/innerClass.jet b/idea/testData/codegen/classes/innerClass.jet
index 6bd9f964929..df43f61e8bc 100644
--- a/idea/testData/codegen/classes/innerClass.jet
+++ b/idea/testData/codegen/classes/innerClass.jet
@@ -1,16 +1,16 @@
 class Outer(val foo: StringBuilder) {
   class Inner() {
-    fun len() {
+    fun len() : Int {
       return foo.length()
     }
   }
 
-  fun test() {
+  fun test() : Inner {
     return Inner()
   }
 }
 
-fun box(): String {
+fun box() : String {
   val sb = StringBuilder("xyzzy")
   val o = Outer(sb)
   val i = o.test()
diff --git a/idea/testData/codegen/classes/newInstanceDefaultConstructor.jet b/idea/testData/codegen/classes/newInstanceDefaultConstructor.jet
index 0bea20be66b..2e91e8ea973 100644
--- a/idea/testData/codegen/classes/newInstanceDefaultConstructor.jet
+++ b/idea/testData/codegen/classes/newInstanceDefaultConstructor.jet
@@ -2,7 +2,7 @@ class SimpleClass() {
     fun foo() = 610
 }
 
-fun test() {
+fun test() : Int {
   val c = SimpleClass()
   return c.foo()
 }
diff --git a/idea/testData/codegen/classes/outerThis.jet b/idea/testData/codegen/classes/outerThis.jet
index 29f8752813b..61642ffa2e2 100644
--- a/idea/testData/codegen/classes/outerThis.jet
+++ b/idea/testData/codegen/classes/outerThis.jet
@@ -6,7 +6,7 @@ class Outer() {
   public val x = Inner()
 }
 
-fun box() {
+fun box() : String {
   val o = Outer()
   return if (o === o.x.outer) "OK" else "fail"
 }
diff --git a/idea/testData/codegen/classes/propertyInInitializer.jet b/idea/testData/codegen/classes/propertyInInitializer.jet
index 5d4ff9ce25e..824da2313aa 100644
--- a/idea/testData/codegen/classes/propertyInInitializer.jet
+++ b/idea/testData/codegen/classes/propertyInInitializer.jet
@@ -10,7 +10,7 @@ class Outer() {
   public val x = InnerDerived()
 }
 
-fun box() {
+fun box() : String {
   val o = Outer()
   return if (o.x.name != "xyzzy") "fail" else "OK"
 }
diff --git a/idea/testData/codegen/classes/simpleClass.jet b/idea/testData/codegen/classes/simpleClass.jet
index 116684dac3b..e860e6e0e0b 100644
--- a/idea/testData/codegen/classes/simpleClass.jet
+++ b/idea/testData/codegen/classes/simpleClass.jet
@@ -1,5 +1,5 @@
 class SimpleClass {
-    fun foo() {
+    fun foo() : Int {
       return 0;
     }
 }
diff --git a/idea/testData/codegen/functionCall.jet b/idea/testData/codegen/functionCall.jet
index 678bebfd1ab..6205f16638f 100644
--- a/idea/testData/codegen/functionCall.jet
+++ b/idea/testData/codegen/functionCall.jet
@@ -1,4 +1,4 @@
-fun f() {
+fun f() : String? {
   val x = StringBuilder();
   g(x);
   return x.toString();
diff --git a/idea/testData/codegen/typeInfo/asSafeWithGenerics.jet b/idea/testData/codegen/typeInfo/asSafeWithGenerics.jet
index 2c86f25e8f3..8eec8607d61 100644
--- a/idea/testData/codegen/typeInfo/asSafeWithGenerics.jet
+++ b/idea/testData/codegen/typeInfo/asSafeWithGenerics.jet
@@ -1,8 +1,8 @@
 class Wrapper<T>() {
-  fun castToSelf(wrapper: Any) = wrapper as? Wrapper<T>
+  fun castToSelf(wrapper: Any) : Wrapper<T>? = wrapper as? Wrapper<T>
 }
 
-fun foo() {
+fun foo() : Wrapper<Int>? {
   val wrapper = Wrapper<Int>()
   return wrapper.castToSelf(Wrapper<String>())
 }
diff --git a/idea/testData/codegen/typeInfo/isWithGenericParameters.jet b/idea/testData/codegen/typeInfo/isWithGenericParameters.jet
index 3faf3afb821..d40eb6e5540 100644
--- a/idea/testData/codegen/typeInfo/isWithGenericParameters.jet
+++ b/idea/testData/codegen/typeInfo/isWithGenericParameters.jet
@@ -2,7 +2,7 @@ class Wrapper<T>() {
   fun isSameWrapper(wrapper: Any) = wrapper is Wrapper<T>
 }
 
-fun foo() {
+fun foo() : Boolean {
   val wrapper = Wrapper<Int>()
   return wrapper.isSameWrapper(Wrapper<String>())
 }
diff --git a/idea/testData/codegen/typeInfo/isWithGenerics.jet b/idea/testData/codegen/typeInfo/isWithGenerics.jet
index fa8458f38cf..4481ede1b02 100644
--- a/idea/testData/codegen/typeInfo/isWithGenerics.jet
+++ b/idea/testData/codegen/typeInfo/isWithGenerics.jet
@@ -1,7 +1,7 @@
 class Wrapper<T>() {
 }
 
-fun foo() {
+fun foo() : Boolean {
   val wrapper = Wrapper<Int>()
   return wrapper is Wrapper<String>
 }
diff --git a/idea/testData/codegen/typeInfo/typeOfOperator.jet b/idea/testData/codegen/typeInfo/typeOfOperator.jet
index b1ba1b372ec..93ee9dd699a 100644
--- a/idea/testData/codegen/typeInfo/typeOfOperator.jet
+++ b/idea/testData/codegen/typeInfo/typeOfOperator.jet
@@ -1,7 +1,7 @@
 class Point() {
 }
 
-fun foo() {
+fun foo() : typeinfo.TypeInfo<Point> {
   val p = Point();
   return typeof(p);
 }
diff --git a/idea/tests/org/jetbrains/jet/codegen/NamespaceGenTest.java b/idea/tests/org/jetbrains/jet/codegen/NamespaceGenTest.java
index b3f4b0353b1..95093596439 100644
--- a/idea/tests/org/jetbrains/jet/codegen/NamespaceGenTest.java
+++ b/idea/tests/org/jetbrains/jet/codegen/NamespaceGenTest.java
@@ -261,7 +261,7 @@ public class NamespaceGenTest extends CodegenTestCase {
     }
 
     public void testStringPlusEq() throws Exception {
-        loadText("fun foo(s: String) { val result = s; result += s; return result; } ");
+        loadText("fun foo(s: String) : String { val result = s; result += s; return result; } ");
         System.out.println(generateToText());
         final Method main = generateFunction();
         assertEquals("JarJar", main.invoke(null, "Jar"));