diff --git a/compiler/frontend/src/org/jetbrains/kotlin/psi/createByPattern.kt b/compiler/frontend/src/org/jetbrains/kotlin/psi/createByPattern.kt
index 0bdbc6e4718..fd626917b8b 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/psi/createByPattern.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/psi/createByPattern.kt
@@ -18,18 +18,17 @@ package org.jetbrains.kotlin.psi
 
 import com.intellij.openapi.util.TextRange
 import com.intellij.psi.PsiElement
-import com.intellij.psi.PsiWhiteSpace
 import com.intellij.psi.SmartPointerManager
 import com.intellij.psi.SmartPsiElementPointer
 import com.intellij.psi.codeStyle.CodeStyleManager
 import com.intellij.psi.impl.source.codeStyle.CodeEditUtil
-import org.jetbrains.kotlin.lexer.JetTokens
 import org.jetbrains.kotlin.name.Name
-import org.jetbrains.kotlin.psi.psiUtil.*
+import org.jetbrains.kotlin.psi.psiUtil.PsiChildRange
+import org.jetbrains.kotlin.psi.psiUtil.endOffset
+import org.jetbrains.kotlin.psi.psiUtil.parentsWithSelf
+import org.jetbrains.kotlin.psi.psiUtil.startOffset
 import org.jetbrains.kotlin.renderer.render
-import java.util.ArrayList
-import java.util.HashMap
-import java.util.LinkedHashMap
+import java.util.*
 
 public fun JetPsiFactory.createExpressionByPattern(pattern: String, vararg args: Any): JetExpression
         = createByPattern(pattern, *args) { createExpression(it) }
@@ -296,6 +295,10 @@ public fun JetPsiFactory.buildExpression(build: BuilderByPattern<JetExpression>.
     return buildByPattern({ pattern, args -> this.createExpressionByPattern(pattern, *args) }, build)
 }
 
+public fun JetPsiFactory.buildDeclaration(build: BuilderByPattern<JetDeclaration>.() -> Unit): JetDeclaration {
+    return buildByPattern({ pattern, args -> this.createDeclarationByPattern(pattern, *args) }, build)
+}
+
 public fun <TElement> buildByPattern(factory: (String, Array<out Any>) -> TElement, build: BuilderByPattern<TElement>.() -> Unit): TElement {
     val builder = BuilderByPattern<TElement>()
     builder.build()
diff --git a/compiler/frontend/src/org/jetbrains/kotlin/psi/psiUtil/psiUtils.kt b/compiler/frontend/src/org/jetbrains/kotlin/psi/psiUtil/psiUtils.kt
index 81efbdee1dc..c3183d6e7da 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/psi/psiUtil/psiUtils.kt
+++ b/compiler/frontend/src/org/jetbrains/kotlin/psi/psiUtil/psiUtils.kt
@@ -310,10 +310,3 @@ public fun SearchScope.contains(element: PsiElement): Boolean = PsiSearchScopeUt
 
 public fun <E : PsiElement> E.createSmartPointer(): SmartPsiElementPointer<E> =
         SmartPointerManager.getInstance(getProject()).createSmartPsiElementPointer(this)
-
-fun PsiElement.resolveAllReferences(): Sequence<PsiElement?> {
-    return PsiReferenceService.getService().getReferences(this, PsiReferenceService.Hints.NO_HINTS)
-            .asSequence()
-            .map { it.resolve() }
-}
-
diff --git a/idea/src/org/jetbrains/kotlin/idea/intentions/IntroduceBackingPropertyIntention.kt b/idea/src/org/jetbrains/kotlin/idea/intentions/IntroduceBackingPropertyIntention.kt
index 81397c95431..e98799a79ed 100644
--- a/idea/src/org/jetbrains/kotlin/idea/intentions/IntroduceBackingPropertyIntention.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/intentions/IntroduceBackingPropertyIntention.kt
@@ -19,12 +19,13 @@ package org.jetbrains.kotlin.idea.intentions
 import com.intellij.codeInsight.intention.IntentionAction
 import com.intellij.openapi.editor.Editor
 import com.intellij.openapi.project.Project
-import com.intellij.psi.PsiWhiteSpace
 import com.intellij.psi.search.LocalSearchScope
 import com.intellij.psi.search.searches.ReferencesSearch
+import org.jetbrains.kotlin.descriptors.PropertyDescriptor
 import org.jetbrains.kotlin.descriptors.impl.SyntheticFieldDescriptor
 import org.jetbrains.kotlin.diagnostics.Diagnostic
 import org.jetbrains.kotlin.idea.caches.resolve.analyze
+import org.jetbrains.kotlin.idea.caches.resolve.getResolutionFacade
 import org.jetbrains.kotlin.idea.quickfix.JetIntentionAction
 import org.jetbrains.kotlin.idea.quickfix.JetSingleIntentionActionFactory
 import org.jetbrains.kotlin.lexer.JetTokens
@@ -35,11 +36,7 @@ import org.jetbrains.kotlin.resolve.BindingContext
 class IntroduceBackingPropertyIntention(): JetSelfTargetingIntention<JetProperty>(javaClass(), "Introduce backing property") {
     override fun isApplicableTo(element: JetProperty, caretOffset: Int): Boolean {
         if (!canIntroduceBackingProperty(element)) return false
-        var elementAtCaret = element.containingFile.findElementAt(caretOffset)
-        if (elementAtCaret is PsiWhiteSpace) {
-            elementAtCaret = element.containingFile.findElementAt(caretOffset - 1)
-        }
-        return elementAtCaret == element.nameIdentifier || elementAtCaret == element.valOrVarKeyword
+        return element.nameIdentifier?.textRange?.containsOffset(caretOffset) == true
     }
 
     override fun applyTo(element: JetProperty, editor: Editor) {
@@ -47,43 +44,46 @@ class IntroduceBackingPropertyIntention(): JetSelfTargetingIntention<JetProperty
     }
 
     companion object {
-        public fun canIntroduceBackingProperty(element: JetProperty): Boolean {
-            val name = element.name ?: return false
-            if (name.startsWith('_')) return false
+        fun canIntroduceBackingProperty(property: JetProperty): Boolean {
+            val name = property.name ?: return false
 
-            if (element.hasDelegate() || element.receiverTypeReference != null) return false
+            val bindingContext = property.getResolutionFacade().analyzeFullyAndGetResult(listOf(property)).bindingContext
+            val descriptor = bindingContext.get(BindingContext.DECLARATION_TO_DESCRIPTOR, property) as? PropertyDescriptor ?: return false
+            if (bindingContext.get(BindingContext.BACKING_FIELD_REQUIRED, descriptor) == false) return false
 
-            val containingClass = element.getStrictParentOfType<JetClassOrObject>() ?: return false
+            val containingClass = property.getStrictParentOfType<JetClassOrObject>() ?: return false
             return containingClass.declarations.none { it is JetProperty && it.name == "_" + name }
         }
 
-        fun introduceBackingProperty(element: JetProperty) {
-            createBackingProperty(element)
+        fun introduceBackingProperty(property: JetProperty) {
+            createBackingProperty(property)
 
-            val type = SpecifyTypeExplicitlyIntention.getTypeForDeclaration(element)
-            SpecifyTypeExplicitlyIntention.addTypeAnnotation(null, element, type)
+            if (property.typeReference == null) {
+                val type = SpecifyTypeExplicitlyIntention.getTypeForDeclaration(property)
+                SpecifyTypeExplicitlyIntention.addTypeAnnotation(null, property, type)
+            }
 
-            val getter = element.getter
+            val getter = property.getter
             if (getter == null) {
-                createGetter(element)
+                createGetter(property)
             }
             else {
-                replaceFieldReferences(getter, element.name!!)
+                replaceFieldReferences(getter, property.name!!)
             }
 
-            if (element.isVar) {
-                val setter = element.setter
+            if (property.isVar) {
+                val setter = property.setter
                 if (setter == null) {
-                    createSetter(element)
+                    createSetter(property)
                 }
                 else {
-                    replaceFieldReferences(setter, element.name!!)
+                    replaceFieldReferences(setter, property.name!!)
                 }
             }
 
-            element.setInitializer(null)
+            property.setInitializer(null)
 
-            replaceBackingFieldReferences(element)
+            replaceBackingFieldReferences(property)
         }
 
         private fun createGetter(element: JetProperty) {
@@ -98,41 +98,41 @@ class IntroduceBackingPropertyIntention(): JetSelfTargetingIntention<JetProperty
             element.add(newSetter)
         }
 
-        private fun createBackingProperty(element: JetProperty) {
-            val backingPropertyText = StringBuilder {
-                append("private ")
-                append(element.valOrVarKeyword.text)
-                append(" _")
-                append(element.name)
-                val typeRef = element.typeReference
-                if (typeRef != null) {
-                    append(": ")
-                    append(typeRef.text)
+        private fun createBackingProperty(property: JetProperty) {
+            val backingProperty = JetPsiFactory(property).buildDeclaration {
+                appendFixedText("private ")
+                appendFixedText(property.valOrVarKeyword.text)
+                appendFixedText(" _${property.name}")
+                if (property.typeReference != null) {
+                    appendFixedText(": ")
+                    appendTypeReference(property.typeReference)
                 }
-
-                val initializer = element.initializer
-                if (initializer != null) {
-                    append(" = ")
-                    append(initializer.text)
+                if (property.initializer != null) {
+                    appendFixedText(" = ")
+                    appendExpression(property.initializer)
                 }
-            }.toString()
+            }
 
-            val backingProp = JetPsiFactory(element).createProperty(backingPropertyText)
-            element.parent.addBefore(backingProp, element)
+            property.parent.addBefore(backingProperty, property)
         }
 
         private fun replaceFieldReferences(element: JetElement, propertyName: String) {
-            val bindingContext = element.analyze()
             element.acceptChildren(object : JetTreeVisitorVoid() {
                 override fun visitSimpleNameExpression(expression: JetSimpleNameExpression) {
+                    val bindingContext = expression.analyze()
                     val target = bindingContext.get(BindingContext.REFERENCE_TARGET, expression)
                     if (target is SyntheticFieldDescriptor) {
                         expression.replace(JetPsiFactory(element).createSimpleName("_$propertyName"))
                     }
                 }
+
+                override fun visitPropertyAccessor(accessor: JetPropertyAccessor) {
+                    // don't go into accessors of properties in local classes because 'field' will mean something different in them
+                }
             })
         }
 
+        // TODO: drop this when we get rid of backing field syntax
         private fun replaceBackingFieldReferences(prop: JetProperty) {
             val containingClass = prop.getStrictParentOfType<JetClassOrObject>()!!
             ReferencesSearch.search(prop, LocalSearchScope(containingClass)).forEach {
diff --git a/idea/src/org/jetbrains/kotlin/idea/intentions/MoveAssignmentToInitializerIntention.kt b/idea/src/org/jetbrains/kotlin/idea/intentions/MoveAssignmentToInitializerIntention.kt
index e107fa69b2e..6518736a4a7 100644
--- a/idea/src/org/jetbrains/kotlin/idea/intentions/MoveAssignmentToInitializerIntention.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/intentions/MoveAssignmentToInitializerIntention.kt
@@ -18,14 +18,14 @@ package org.jetbrains.kotlin.idea.intentions
 
 import com.intellij.openapi.editor.Editor
 import com.intellij.psi.PsiElement
-import com.intellij.psi.TokenType
+import com.intellij.psi.PsiReferenceService
 import com.intellij.psi.util.PsiTreeUtil
 import org.jetbrains.kotlin.lexer.JetTokens
 import org.jetbrains.kotlin.psi.*
 import org.jetbrains.kotlin.psi.psiUtil.anyDescendantOfType
+import org.jetbrains.kotlin.psi.psiUtil.contentRange
 import org.jetbrains.kotlin.psi.psiUtil.getNonStrictParentOfType
 import org.jetbrains.kotlin.psi.psiUtil.getStrictParentOfType
-import org.jetbrains.kotlin.psi.psiUtil.resolveAllReferences
 import org.jetbrains.kotlin.utils.addToStdlib.firstIsInstanceOrNull
 
 public class MoveAssignmentToInitializerIntention :
@@ -35,47 +35,41 @@ public class MoveAssignmentToInitializerIntention :
         if (element.operationToken != JetTokens.EQ) {
             return false
         }
-        val rhs = element.right ?: return false
+        val rightExpression = element.right ?: return false
 
-        val block = PsiTreeUtil.getParentOfType(element,
-                                                JetClassInitializer::class.java,
-                                                JetSecondaryConstructor::class.java) ?: return false
+        val initializer = PsiTreeUtil.getParentOfType(element,
+                                                      JetClassInitializer::class.java,
+                                                      JetSecondaryConstructor::class.java) ?: return false
 
         val target = findTargetProperty(element)
         return target != null && target.initializer == null && target.receiverTypeReference == null &&
                target.getNonStrictParentOfType<JetClassOrObject>() == element.getNonStrictParentOfType<JetClassOrObject>() &&
-               hasNoLocalDependencies(rhs, block)
+               hasNoLocalDependencies(rightExpression, initializer)
 
     }
 
     override fun applyTo(element: JetBinaryExpression, editor: Editor) {
-        val prop = findTargetProperty(element) ?: return
+        val property = findTargetProperty(element) ?: return
         val initializer = element.right ?: return
-        prop.setInitializer(initializer)
+        property.setInitializer(initializer)
 
         val initializerBlock = element.getStrictParentOfType<JetClassInitializer>()
         element.delete()
         if (initializerBlock != null && (initializerBlock.body as? JetBlockExpression)?.isEmpty() == true) {
             initializerBlock.delete()
         }
+
+        property.initializer?.navigate(true)
     }
 
     private fun findTargetProperty(expr: JetBinaryExpression): JetProperty? {
-        val lhs = expr.left as? JetSimpleNameExpression ?: return null
-        return lhs.resolveAllReferences().firstIsInstanceOrNull<JetProperty>()
+        val leftExpression = expr.left as? JetSimpleNameExpression ?: return null
+        return leftExpression.resolveAllReferences().firstIsInstanceOrNull<JetProperty>()
     }
 
     fun JetBlockExpression.isEmpty(): Boolean {
-        var node = node?.firstChildNode
-        while (node != null) {
-            if (node.elementType != TokenType.WHITE_SPACE &&
-                node.elementType != JetTokens.LBRACE &&
-                node.elementType != JetTokens.RBRACE) {
-                return false
-            }
-            node = node.treeNext
-        }
-        return true
+        // a block that only contains comments is not empty
+        return contentRange().isEmpty
     }
 
     private fun hasNoLocalDependencies(element: JetElement, localContext: PsiElement): Boolean {
@@ -84,3 +78,11 @@ public class MoveAssignmentToInitializerIntention :
         }
     }
 }
+
+private fun PsiElement.resolveAllReferences(): Sequence<PsiElement?> {
+    return PsiReferenceService.getService().getReferences(this, PsiReferenceService.Hints.NO_HINTS)
+            .asSequence()
+            .map { it.resolve() }
+}
+
+
diff --git a/idea/testData/intentions/introduceBackingProperty/inapplicableAbstractProperty.kt b/idea/testData/intentions/introduceBackingProperty/inapplicableAbstractProperty.kt
new file mode 100644
index 00000000000..3b61c7d6911
--- /dev/null
+++ b/idea/testData/intentions/introduceBackingProperty/inapplicableAbstractProperty.kt
@@ -0,0 +1,5 @@
+// IS_APPLICABLE: false
+
+abstract class Foo {
+    abstract val <caret>x: Int
+}
diff --git a/idea/testData/intentions/introduceBackingProperty/inapplicableNoBackingField.kt b/idea/testData/intentions/introduceBackingProperty/inapplicableNoBackingField.kt
new file mode 100644
index 00000000000..45707033197
--- /dev/null
+++ b/idea/testData/intentions/introduceBackingProperty/inapplicableNoBackingField.kt
@@ -0,0 +1,6 @@
+// IS_APPLICABLE: false
+
+class Foo {
+    val <caret>x: Int
+        get() = 1
+}
diff --git a/idea/testData/intentions/introduceBackingProperty/simpleValWithType.kt b/idea/testData/intentions/introduceBackingProperty/simpleValWithType.kt
new file mode 100644
index 00000000000..5b11bb301bd
--- /dev/null
+++ b/idea/testData/intentions/introduceBackingProperty/simpleValWithType.kt
@@ -0,0 +1,3 @@
+class Foo {
+    val <caret>x: Any = ""
+}
diff --git a/idea/testData/intentions/introduceBackingProperty/simpleValWithType.kt.after b/idea/testData/intentions/introduceBackingProperty/simpleValWithType.kt.after
new file mode 100644
index 00000000000..0d11d86309c
--- /dev/null
+++ b/idea/testData/intentions/introduceBackingProperty/simpleValWithType.kt.after
@@ -0,0 +1,5 @@
+class Foo {
+    private val _x: Any = ""
+    val x: Any
+        get() = _x
+}
diff --git a/idea/testData/intentions/moveAssignmentToInitializer/backingField.kt.after b/idea/testData/intentions/moveAssignmentToInitializer/backingField.kt.after
index d830c8219d4..4d7d49cf269 100644
--- a/idea/testData/intentions/moveAssignmentToInitializer/backingField.kt.after
+++ b/idea/testData/intentions/moveAssignmentToInitializer/backingField.kt.after
@@ -1,5 +1,5 @@
 class A {
-    var a: Int = 1
+    var a: Int =<caret> 1
     var b: Int
 
     init {
diff --git a/idea/tests/org/jetbrains/kotlin/idea/intentions/IntentionTestGenerated.java b/idea/tests/org/jetbrains/kotlin/idea/intentions/IntentionTestGenerated.java
index 887b9da3c06..9c301c830a9 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/intentions/IntentionTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/idea/intentions/IntentionTestGenerated.java
@@ -5187,12 +5187,30 @@ public class IntentionTestGenerated extends AbstractIntentionTest {
             doTest(fileName);
         }
 
+        @TestMetadata("inapplicableAbstractProperty.kt")
+        public void testInapplicableAbstractProperty() throws Exception {
+            String fileName = JetTestUtils.navigationMetadata("idea/testData/intentions/introduceBackingProperty/inapplicableAbstractProperty.kt");
+            doTest(fileName);
+        }
+
+        @TestMetadata("inapplicableNoBackingField.kt")
+        public void testInapplicableNoBackingField() throws Exception {
+            String fileName = JetTestUtils.navigationMetadata("idea/testData/intentions/introduceBackingProperty/inapplicableNoBackingField.kt");
+            doTest(fileName);
+        }
+
         @TestMetadata("simpleVal.kt")
         public void testSimpleVal() throws Exception {
             String fileName = JetTestUtils.navigationMetadata("idea/testData/intentions/introduceBackingProperty/simpleVal.kt");
             doTest(fileName);
         }
 
+        @TestMetadata("simpleValWithType.kt")
+        public void testSimpleValWithType() throws Exception {
+            String fileName = JetTestUtils.navigationMetadata("idea/testData/intentions/introduceBackingProperty/simpleValWithType.kt");
+            doTest(fileName);
+        }
+
         @TestMetadata("simpleVar.kt")
         public void testSimpleVar() throws Exception {
             String fileName = JetTestUtils.navigationMetadata("idea/testData/intentions/introduceBackingProperty/simpleVar.kt");