diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/BothSignatureWriter.java b/compiler/backend/src/org/jetbrains/jet/codegen/BothSignatureWriter.java
index 440d0587873..70c66da4870 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/BothSignatureWriter.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/BothSignatureWriter.java
@@ -1,8 +1,8 @@
 package org.jetbrains.jet.codegen;
 
-import jet.typeinfo.TypeInfoVariance;
 import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
+import org.jetbrains.jet.lang.resolve.java.JetSignatureUtils;
 import org.jetbrains.jet.rt.signature.JetSignatureAdapter;
 import org.jetbrains.jet.rt.signature.JetSignatureReader;
 import org.jetbrains.jet.rt.signature.JetSignatureWriter;
@@ -184,21 +184,12 @@ public class BothSignatureWriter {
         signatureVisitor().visitTypeVariable(name);
         jetSignatureWriter.visitTypeVariable(name, nullable);
     }
-    
-    private TypeInfoVariance translateVariance(Variance variance) {
-        switch (variance) {
-            case IN_VARIANCE: return TypeInfoVariance.IN;
-            case OUT_VARIANCE: return TypeInfoVariance.OUT;
-            case INVARIANT: return TypeInfoVariance.INVARIANT;
-            default: throw new IllegalStateException();
-        }
-    }
-    
+
     public void writeFormalTypeParameter(final String name, Variance variance) {
         checkTopLevel();
 
         signatureVisitor().visitFormalTypeParameter(name);
-        jetSignatureWriter.visitFormalTypeParameter(name, translateVariance(variance));
+        jetSignatureWriter.visitFormalTypeParameter(name, JetSignatureUtils.translateVariance(variance));
     }
     
     public void writeFormalTypeParameterEnd() {
diff --git a/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/JavaDescriptorResolver.java b/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/JavaDescriptorResolver.java
index e6c73ef29eb..9bde734e3ba 100644
--- a/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/JavaDescriptorResolver.java
+++ b/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/JavaDescriptorResolver.java
@@ -551,7 +551,7 @@ public class JavaDescriptorResolver {
         final List<TypeParameterDescriptor> r = new ArrayList<TypeParameterDescriptor>();
         new JetSignatureReader(jetSignature).acceptFormalTypeParametersOnly(new JetSignatureExceptionsAdapter() {
             @Override
-            public JetSignatureVisitor visitFormalTypeParameter(final String name, TypeInfoVariance variance) {
+            public JetSignatureVisitor visitFormalTypeParameter(final String name, final TypeInfoVariance variance) {
 
                 return new JetSignatureExceptionsAdapter() {
                     int index = 0;
@@ -582,7 +582,7 @@ public class JavaDescriptorResolver {
                                 functionDescriptor,
                                 Collections.<AnnotationDescriptor>emptyList(), // TODO: wrong
                                 true, // TODO: wrong
-                                Variance.INVARIANT, // TOOD: wrong
+                                JetSignatureUtils.translateVariance(variance),
                                 name,
                                 ++index);
                         r.add(typeParameter);
diff --git a/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/JetSignatureUtils.java b/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/JetSignatureUtils.java
new file mode 100644
index 00000000000..a1207b905fe
--- /dev/null
+++ b/compiler/frontend.java/src/org/jetbrains/jet/lang/resolve/java/JetSignatureUtils.java
@@ -0,0 +1,28 @@
+package org.jetbrains.jet.lang.resolve.java;
+
+import jet.typeinfo.TypeInfoVariance;
+import org.jetbrains.jet.lang.types.Variance;
+
+/**
+ * @author Stepan Koltsov
+ */
+public class JetSignatureUtils {
+    
+    static {
+        if (Variance.INVARIANT.ordinal() != TypeInfoVariance.INVARIANT.ordinal())
+            throw new IllegalStateException();
+        if (Variance.IN_VARIANCE.ordinal() != TypeInfoVariance.IN.ordinal())
+            throw new IllegalStateException();
+        if (Variance.OUT_VARIANCE.ordinal() != TypeInfoVariance.OUT.ordinal())
+            throw new IllegalStateException();
+    }
+
+    public static TypeInfoVariance translateVariance(Variance variance) {
+        return TypeInfoVariance.values()[variance.ordinal()];
+    }
+
+    public static Variance translateVariance(TypeInfoVariance variance) {
+        return Variance.values()[variance.ordinal()];
+    }
+
+}
diff --git a/compiler/testData/readClass/FunInParam.kt b/compiler/testData/readClass/FunInParam.kt
new file mode 100644
index 00000000000..c12eb63fc3e
--- /dev/null
+++ b/compiler/testData/readClass/FunInParam.kt
@@ -0,0 +1,3 @@
+namespace test
+
+fun <in T> f() = 1
diff --git a/compiler/testData/readClass/FunOutParam.kt b/compiler/testData/readClass/FunOutParam.kt
new file mode 100644
index 00000000000..7198872c6f8
--- /dev/null
+++ b/compiler/testData/readClass/FunOutParam.kt
@@ -0,0 +1,3 @@
+namespace test
+
+fun <out T> f() = 1
diff --git a/compiler/tests/org/jetbrains/jet/ReadClassDataTest.java b/compiler/tests/org/jetbrains/jet/ReadClassDataTest.java
index 03936722192..2d375655704 100644
--- a/compiler/tests/org/jetbrains/jet/ReadClassDataTest.java
+++ b/compiler/tests/org/jetbrains/jet/ReadClassDataTest.java
@@ -237,7 +237,12 @@ public class ReadClassDataTest extends UsefulTestCase {
     }
     
     private void serialize(Variance variance, StringBuilder sb) {
-        sb.append(variance);
+        if (variance == Variance.INVARIANT) {
+
+        } else {
+            sb.append(variance);
+            sb.append(' ');
+        }
     } 
     
     private void serialize(JetType type, StringBuilder sb) {
@@ -318,9 +323,7 @@ public class ReadClassDataTest extends UsefulTestCase {
     }
     
     private void serialize(TypeParameterDescriptor param, StringBuilder sb) {
-        if (param.getVariance() != Variance.INVARIANT) {
-            serialize(param.getVariance(), sb);
-        }
+        serialize(param.getVariance(), sb);
         sb.append(param.getName());
         // TODO: serialize bounds
     }