diff --git a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/FirCastDiagnosticsHelpers.kt b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/FirCastDiagnosticsHelpers.kt
index 1cfd7c64d9d..f7523283a99 100644
--- a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/FirCastDiagnosticsHelpers.kt
+++ b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/FirCastDiagnosticsHelpers.kt
@@ -135,7 +135,7 @@ private fun getCorrespondingKotlinClass(type: ConeSimpleKotlinType, session: Fir
 }
 
 private fun isFinal(type: ConeSimpleKotlinType, session: FirSession): Boolean {
-    return !type.canHaveSubtypes(session)
+    return !type.canHaveSubtypesAccordingToK1(session)
 }
 
 fun isCastErased(supertype: ConeKotlinType, subtype: ConeKotlinType, context: CheckerContext): Boolean {
diff --git a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirTypeParameterBoundsChecker.kt b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirTypeParameterBoundsChecker.kt
index a86b8f95dc3..c50aab26413 100644
--- a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirTypeParameterBoundsChecker.kt
+++ b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/declaration/FirTypeParameterBoundsChecker.kt
@@ -75,7 +75,7 @@ sealed class FirTypeParameterBoundsChecker(mppKind: MppCheckerKind) : FirTypePar
         if (containingDeclaration is FirProperty && containingDeclaration.isOverride) return
 
         declaration.symbol.resolvedBounds.forEach { bound ->
-            if (!bound.coneType.canHaveSubtypes(context.session)) {
+            if (!bound.coneType.canHaveSubtypesAccordingToK1(context.session)) {
                 reporter.reportOn(bound.source, FirErrors.FINAL_UPPER_BOUND, bound.coneType, context)
             }
         }
@@ -148,7 +148,7 @@ sealed class FirTypeParameterBoundsChecker(mppKind: MppCheckerKind) : FirTypePar
 
         fun anyConflictingTypes(types: List<ConeKotlinType>): Boolean {
             types.forEach { type ->
-                if (!type.canHaveSubtypes(context.session)) {
+                if (!type.canHaveSubtypesAccordingToK1(context.session)) {
                     types.forEach { otherType ->
                         if (type != otherType && !type.isRelated(context.session.typeContext, otherType)) {
                             return true
diff --git a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/expression/FirEqualityCompatibilityChecker.kt b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/expression/FirEqualityCompatibilityChecker.kt
index 2c4949004f2..27184d3860a 100644
--- a/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/expression/FirEqualityCompatibilityChecker.kt
+++ b/compiler/fir/checkers/src/org/jetbrains/kotlin/fir/analysis/checkers/expression/FirEqualityCompatibilityChecker.kt
@@ -333,7 +333,7 @@ private fun ConeKotlinType.toTypeInfo(session: FirSession): TypeInfo {
         isValueClass = bounds.any { it.toClassSymbol(session)?.isInline == true },
         isFinal = bounds.any { it.toClassSymbol(session)?.isFinalClass == true },
         // In K1's intersector, `canHaveSubtypes()` is called for `nullabilityStripped`.
-        withNullability(ConeNullability.NOT_NULL, session.typeContext).canHaveSubtypes(session),
+        withNullability(ConeNullability.NOT_NULL, session.typeContext).canHaveSubtypesAccordingToK1(session),
     )
 }
 
diff --git a/compiler/fir/providers/src/org/jetbrains/kotlin/fir/types/TypeUtils.kt b/compiler/fir/providers/src/org/jetbrains/kotlin/fir/types/TypeUtils.kt
index 057d060130f..85e0247f871 100644
--- a/compiler/fir/providers/src/org/jetbrains/kotlin/fir/types/TypeUtils.kt
+++ b/compiler/fir/providers/src/org/jetbrains/kotlin/fir/types/TypeUtils.kt
@@ -584,10 +584,13 @@ fun FirCallableDeclaration.isSubtypeOf(
     )
 }
 
+fun ConeKotlinType.canHaveSubtypesAccordingToK1(session: FirSession): Boolean =
+    hasSubtypesAboveNothingAccordingToK1(session)
+
 /**
  * The original K1 function: [org.jetbrains.kotlin.types.TypeUtils.canHaveSubtypes].
  */
-fun ConeKotlinType.canHaveSubtypes(session: FirSession): Boolean {
+private fun ConeKotlinType.hasSubtypesAboveNothingAccordingToK1(session: FirSession): Boolean {
     if (this.isMarkedNullable) {
         return true
     }
@@ -608,12 +611,13 @@ fun ConeKotlinType.canHaveSubtypes(session: FirSession): Boolean {
         val argument = typeProjection.type!! //safe because it is not a star
 
         val canHaveSubtypes = when (typeProjection.variance) {
-            Variance.OUT_VARIANCE -> argument.canHaveSubtypes(session)
-            Variance.IN_VARIANCE -> argument.lowerThanBound(typeParameterSymbol, session)
+            Variance.OUT_VARIANCE -> argument.hasSubtypesAboveNothingAccordingToK1(session)
+            Variance.IN_VARIANCE -> argument.hasSupertypesBelowParameterBoundsAccordingToK1(typeParameterSymbol, session)
             Variance.INVARIANT -> when (typeParameterSymbol.variance) {
-                Variance.OUT_VARIANCE -> argument.canHaveSubtypes(session)
-                Variance.IN_VARIANCE -> argument.lowerThanBound(typeParameterSymbol, session)
-                Variance.INVARIANT -> argument.canHaveSubtypes(session) || argument.lowerThanBound(typeParameterSymbol, session)
+                Variance.OUT_VARIANCE -> argument.hasSubtypesAboveNothingAccordingToK1(session)
+                Variance.IN_VARIANCE -> argument.hasSupertypesBelowParameterBoundsAccordingToK1(typeParameterSymbol, session)
+                Variance.INVARIANT -> argument.hasSubtypesAboveNothingAccordingToK1(session)
+                        || argument.hasSupertypesBelowParameterBoundsAccordingToK1(typeParameterSymbol, session)
             }
         }
 
@@ -646,7 +650,10 @@ fun ConeClassLikeType.toClassSymbol(session: FirSession): FirClassSymbol<*>? {
  * This function returns `true` if `argument` suits any bound rather than the
  * intersection of them all, and it expects there to be at least a single bound.
  */
-private fun ConeKotlinType.lowerThanBound(typeParameterSymbol: FirTypeParameterSymbol, session: FirSession): Boolean {
+private fun ConeKotlinType.hasSupertypesBelowParameterBoundsAccordingToK1(
+    typeParameterSymbol: FirTypeParameterSymbol,
+    session: FirSession,
+): Boolean {
     typeParameterSymbol.resolvedBounds.forEach { boundTypeRef ->
         if (this != boundTypeRef.coneType && isSubtypeOf(session.typeContext, boundTypeRef.coneType)) {
             return true