diff --git a/compiler/backend/src/org/jetbrains/kotlin/codegen/JvmCodegenUtil.java b/compiler/backend/src/org/jetbrains/kotlin/codegen/JvmCodegenUtil.java
index 4f2f88fffd9..94f7b13afa3 100644
--- a/compiler/backend/src/org/jetbrains/kotlin/codegen/JvmCodegenUtil.java
+++ b/compiler/backend/src/org/jetbrains/kotlin/codegen/JvmCodegenUtil.java
@@ -17,6 +17,7 @@
 package org.jetbrains.kotlin.codegen;
 
 import com.intellij.psi.PsiElement;
+import com.intellij.psi.PsiFile;
 import kotlin.CollectionsKt;
 import kotlin.StringsKt;
 import kotlin.jvm.functions.Function1;
@@ -31,7 +32,6 @@ import org.jetbrains.kotlin.load.java.JvmAbi;
 import org.jetbrains.kotlin.load.java.JvmAnnotationNames;
 import org.jetbrains.kotlin.load.kotlin.ModuleMapping;
 import org.jetbrains.kotlin.load.kotlin.ModuleVisibilityUtilsKt;
-import org.jetbrains.kotlin.load.kotlin.incremental.IncrementalPackageFragmentProvider;
 import org.jetbrains.kotlin.psi.JetFile;
 import org.jetbrains.kotlin.psi.JetFunction;
 import org.jetbrains.kotlin.psi.codeFragmentUtil.CodeFragmentUtilKt;
@@ -77,25 +77,21 @@ public class JvmCodegenUtil {
 
         return !isFakeOverride && !isDelegate &&
                (((context.hasThisDescriptor() && containingDeclaration == context.getThisDescriptor()) ||
-                 ((context.getParentContext() instanceof PackageContext || context.getParentContext() instanceof MultifileClassPartContext)
-                  && isSamePackageInSameModule(context.getParentContext().getContextDescriptor(), containingDeclaration)))
+                 ((context.getParentContext() instanceof FacadePartWithSourceFile)
+                  && isWithinSameFile(((FacadePartWithSourceFile) context.getParentContext()).getSourceFile(), descriptor)))
                 && context.getContextKind() != OwnerKind.DEFAULT_IMPLS);
     }
 
-    private static boolean isSamePackageInSameModule(
-            @NotNull DeclarationDescriptor callerOwner,
-            @NotNull DeclarationDescriptor calleeOwner
+    private static boolean isWithinSameFile(
+            @Nullable JetFile callerFile,
+            @NotNull CallableMemberDescriptor descriptor
     ) {
-        if (callerOwner instanceof PackageFragmentDescriptor && calleeOwner instanceof PackageFragmentDescriptor) {
-            PackageFragmentDescriptor callerFragment = (PackageFragmentDescriptor) callerOwner;
-            PackageFragmentDescriptor calleeFragment = (PackageFragmentDescriptor) calleeOwner;
+        DeclarationDescriptor containingDeclaration = descriptor.getContainingDeclaration().getOriginal();
+        if (containingDeclaration instanceof PackageFragmentDescriptor) {
+            PsiElement calleeElement = DescriptorToSourceUtils.descriptorToDeclaration(descriptor);
+            PsiFile calleeFile = calleeElement != null ? calleeElement.getContainingFile() : null;
+            return callerFile != null && callerFile != SourceFile.NO_SOURCE_FILE && calleeFile == callerFile;
 
-            // backing field should be used directly within same module of same package
-            if (callerFragment == calleeFragment) {
-                return true;
-            }
-            return callerFragment.getFqName().equals(calleeFragment.getFqName())
-                   && calleeFragment instanceof IncrementalPackageFragmentProvider.IncrementalPackageFragment;
         }
         return false;
     }
diff --git a/compiler/backend/src/org/jetbrains/kotlin/codegen/MultifileClassCodegen.kt b/compiler/backend/src/org/jetbrains/kotlin/codegen/MultifileClassCodegen.kt
index 92ce445e405..29d0e15fac6 100644
--- a/compiler/backend/src/org/jetbrains/kotlin/codegen/MultifileClassCodegen.kt
+++ b/compiler/backend/src/org/jetbrains/kotlin/codegen/MultifileClassCodegen.kt
@@ -162,7 +162,7 @@ public class MultifileClassCodegen(
         var generatePart = false
         val partClassInfo = state.fileClassesProvider.getFileClassInfo(file)
         val partType = AsmUtil.asmTypeByFqNameWithoutInnerClasses(partClassInfo.fileClassFqName)
-        val partContext = state.rootContext.intoMultifileClassPart(packageFragment, facadeClassType, partType)
+        val partContext = state.rootContext.intoMultifileClassPart(packageFragment, facadeClassType, partType, file)
 
         for (declaration in file.declarations) {
             if (declaration is JetProperty || declaration is JetNamedFunction) {
diff --git a/compiler/backend/src/org/jetbrains/kotlin/codegen/PackageCodegen.java b/compiler/backend/src/org/jetbrains/kotlin/codegen/PackageCodegen.java
index 442a4d2318d..b743e593623 100644
--- a/compiler/backend/src/org/jetbrains/kotlin/codegen/PackageCodegen.java
+++ b/compiler/backend/src/org/jetbrains/kotlin/codegen/PackageCodegen.java
@@ -87,7 +87,7 @@ public class PackageCodegen {
         }
 
         Type fileClassType = AsmUtil.asmTypeByFqNameWithoutInnerClasses(fileClassInfo.getFileClassFqName());
-        PackageContext packagePartContext = state.getRootContext().intoPackagePart(packageFragment, fileClassType);
+        PackageContext packagePartContext = state.getRootContext().intoPackagePart(packageFragment, fileClassType, file);
 
         boolean generatePackagePart = false;
 
diff --git a/compiler/backend/src/org/jetbrains/kotlin/codegen/PropertyCodegen.java b/compiler/backend/src/org/jetbrains/kotlin/codegen/PropertyCodegen.java
index cdac043d141..b28deb83c7c 100644
--- a/compiler/backend/src/org/jetbrains/kotlin/codegen/PropertyCodegen.java
+++ b/compiler/backend/src/org/jetbrains/kotlin/codegen/PropertyCodegen.java
@@ -340,7 +340,7 @@ public class PropertyCodegen {
         else if (!isDelegate && hasJvmFieldAnnotation) {
             modifiers |= getDefaultVisibilityFlag(propertyDescriptor.getVisibility());
         }
-        else if (kind != OwnerKind.PACKAGE || isDelegate) {
+        else {
             modifiers |= ACC_PRIVATE;
         }
 
diff --git a/compiler/backend/src/org/jetbrains/kotlin/codegen/context/CodegenContext.java b/compiler/backend/src/org/jetbrains/kotlin/codegen/context/CodegenContext.java
index 4639df8f0d3..aba2c4e7599 100644
--- a/compiler/backend/src/org/jetbrains/kotlin/codegen/context/CodegenContext.java
+++ b/compiler/backend/src/org/jetbrains/kotlin/codegen/context/CodegenContext.java
@@ -24,6 +24,7 @@ import org.jetbrains.kotlin.codegen.binding.MutableClosure;
 import org.jetbrains.kotlin.codegen.state.GenerationState;
 import org.jetbrains.kotlin.codegen.state.JetTypeMapper;
 import org.jetbrains.kotlin.descriptors.*;
+import org.jetbrains.kotlin.psi.JetFile;
 import org.jetbrains.kotlin.psi.JetSuperExpression;
 import org.jetbrains.kotlin.resolve.BindingContext;
 import org.jetbrains.kotlin.resolve.DescriptorUtils;
@@ -180,17 +181,18 @@ public abstract class CodegenContext<T extends DeclarationDescriptor> {
     }
 
     @NotNull
-    public PackageContext intoPackagePart(@NotNull PackageFragmentDescriptor descriptor, Type packagePartType) {
-        return new PackageContext(descriptor, this, packagePartType);
+    public PackageContext intoPackagePart(@NotNull PackageFragmentDescriptor descriptor, Type packagePartType, @Nullable JetFile sourceFile) {
+        return new PackageContext(descriptor, this, packagePartType, sourceFile);
     }
 
     @NotNull
     public FieldOwnerContext<PackageFragmentDescriptor> intoMultifileClassPart(
             @NotNull PackageFragmentDescriptor descriptor,
             @NotNull Type multifileClassType,
-            @NotNull Type filePartType
+            @NotNull Type filePartType,
+            @NotNull JetFile sourceFile
     ) {
-        return new MultifileClassPartContext(descriptor, this, multifileClassType, filePartType);
+        return new MultifileClassPartContext(descriptor, this, multifileClassType, filePartType, sourceFile);
     }
 
     @NotNull
diff --git a/compiler/backend/src/org/jetbrains/kotlin/codegen/context/FacadePartWithSourceFile.java b/compiler/backend/src/org/jetbrains/kotlin/codegen/context/FacadePartWithSourceFile.java
new file mode 100644
index 00000000000..412799db0e6
--- /dev/null
+++ b/compiler/backend/src/org/jetbrains/kotlin/codegen/context/FacadePartWithSourceFile.java
@@ -0,0 +1,26 @@
+/*
+ * Copyright 2010-2015 JetBrains s.r.o.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+package org.jetbrains.kotlin.codegen.context;
+
+import org.jetbrains.annotations.Nullable;
+import org.jetbrains.kotlin.psi.JetFile;
+
+public interface FacadePartWithSourceFile {
+
+    @Nullable
+    JetFile getSourceFile();
+}
diff --git a/compiler/backend/src/org/jetbrains/kotlin/codegen/context/MultifileClassPartContext.java b/compiler/backend/src/org/jetbrains/kotlin/codegen/context/MultifileClassPartContext.java
index 95a916113e7..cac52194dcd 100644
--- a/compiler/backend/src/org/jetbrains/kotlin/codegen/context/MultifileClassPartContext.java
+++ b/compiler/backend/src/org/jetbrains/kotlin/codegen/context/MultifileClassPartContext.java
@@ -16,18 +16,24 @@
 
 package org.jetbrains.kotlin.codegen.context;
 
+import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
 import org.jetbrains.kotlin.descriptors.PackageFragmentDescriptor;
+import org.jetbrains.kotlin.psi.JetFile;
 import org.jetbrains.org.objectweb.asm.Type;
 
-public class MultifileClassPartContext extends MultifileClassContextBase implements DelegatingToPartContext {
+public class MultifileClassPartContext extends MultifileClassContextBase implements DelegatingToPartContext, FacadePartWithSourceFile {
+    private final JetFile sourceFile;
+
     public MultifileClassPartContext(
             PackageFragmentDescriptor descriptor,
             CodegenContext parent,
             Type multifileClassType,
-            Type filePartType
+            Type filePartType,
+            @NotNull JetFile sourceFile
     ) {
         super(descriptor, parent, multifileClassType, filePartType);
+        this.sourceFile = sourceFile;
     }
 
     @Nullable
@@ -35,4 +41,10 @@ public class MultifileClassPartContext extends MultifileClassContextBase impleme
     public Type getImplementationOwnerClassType() {
         return getFilePartType();
     }
+
+    @NotNull
+    @Override
+    public JetFile getSourceFile() {
+        return sourceFile;
+    }
 }
diff --git a/compiler/backend/src/org/jetbrains/kotlin/codegen/context/PackageContext.java b/compiler/backend/src/org/jetbrains/kotlin/codegen/context/PackageContext.java
index 894549cd86c..710fe1faeb2 100644
--- a/compiler/backend/src/org/jetbrains/kotlin/codegen/context/PackageContext.java
+++ b/compiler/backend/src/org/jetbrains/kotlin/codegen/context/PackageContext.java
@@ -20,18 +20,22 @@ import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
 import org.jetbrains.kotlin.codegen.OwnerKind;
 import org.jetbrains.kotlin.descriptors.PackageFragmentDescriptor;
+import org.jetbrains.kotlin.psi.JetFile;
 import org.jetbrains.org.objectweb.asm.Type;
 
-public class PackageContext extends FieldOwnerContext<PackageFragmentDescriptor> implements DelegatingToPartContext {
+public class PackageContext extends FieldOwnerContext<PackageFragmentDescriptor> implements DelegatingToPartContext, FacadePartWithSourceFile {
     private final Type packagePartType;
+    @Nullable private JetFile sourceFile;
 
     public PackageContext(
             @NotNull PackageFragmentDescriptor contextDescriptor,
             @NotNull CodegenContext parent,
-            @Nullable Type packagePartType
+            @Nullable Type packagePartType,
+            @Nullable JetFile sourceFile
     ) {
         super(contextDescriptor, OwnerKind.PACKAGE, parent, null, null, null);
         this.packagePartType = packagePartType;
+        this.sourceFile = sourceFile;
     }
 
     @Override
@@ -49,4 +53,10 @@ public class PackageContext extends FieldOwnerContext<PackageFragmentDescriptor>
     public Type getImplementationOwnerClassType() {
         return packagePartType;
     }
+
+    @Nullable
+    @Override
+    public JetFile getSourceFile() {
+        return sourceFile;
+    }
 }
diff --git a/compiler/backend/src/org/jetbrains/kotlin/codegen/context/PackageFacadeContext.java b/compiler/backend/src/org/jetbrains/kotlin/codegen/context/PackageFacadeContext.java
index fd6cfca81e5..f31b34bb946 100644
--- a/compiler/backend/src/org/jetbrains/kotlin/codegen/context/PackageFacadeContext.java
+++ b/compiler/backend/src/org/jetbrains/kotlin/codegen/context/PackageFacadeContext.java
@@ -38,7 +38,7 @@ public class PackageFacadeContext extends PackageContext implements DelegatingFa
             @NotNull Type packagePartType,
             @NotNull Type publicFacadeType
     ) {
-        super(contextDescriptor, parent, packagePartType);
+        super(contextDescriptor, parent, packagePartType, null);
 
         this.publicFacadeType = publicFacadeType;
     }
diff --git a/compiler/backend/src/org/jetbrains/kotlin/codegen/inline/InlineCodegen.java b/compiler/backend/src/org/jetbrains/kotlin/codegen/inline/InlineCodegen.java
index fd74cc9976c..26421fe9988 100644
--- a/compiler/backend/src/org/jetbrains/kotlin/codegen/inline/InlineCodegen.java
+++ b/compiler/backend/src/org/jetbrains/kotlin/codegen/inline/InlineCodegen.java
@@ -109,7 +109,8 @@ public class InlineCodegen extends CallGenerator {
 
         initialFrameSize = codegen.getFrameMap().getCurrentSize();
 
-        context = (MethodContext) getContext(functionDescriptor, state);
+        PsiElement element = DescriptorToSourceUtils.descriptorToDeclaration(functionDescriptor);
+        context = (MethodContext) getContext(functionDescriptor, state, element != null ? (JetFile) element.getContainingFile() : null);
         jvmSignature = typeMapper.mapSignature(functionDescriptor, context.getContextKind());
 
         // TODO: implement AS_FUNCTION inline strategy
@@ -586,12 +587,12 @@ public class InlineCodegen extends CallGenerator {
         activeLambda = null;
     }
 
-    public static CodegenContext getContext(DeclarationDescriptor descriptor, GenerationState state) {
+    public static CodegenContext getContext(@NotNull DeclarationDescriptor descriptor, @NotNull GenerationState state, @Nullable JetFile sourceFile) {
         if (descriptor instanceof PackageFragmentDescriptor) {
-            return new PackageContext((PackageFragmentDescriptor) descriptor, state.getRootContext(), null);
+            return new PackageContext((PackageFragmentDescriptor) descriptor, state.getRootContext(), null, sourceFile);
         }
 
-        CodegenContext parent = getContext(descriptor.getContainingDeclaration(), state);
+        CodegenContext parent = getContext(descriptor.getContainingDeclaration(), state, sourceFile);
 
         if (descriptor instanceof ClassDescriptor) {
             OwnerKind kind = DescriptorUtils.isInterface(descriptor) ? OwnerKind.DEFAULT_IMPLS : OwnerKind.IMPLEMENTATION;
diff --git a/compiler/light-classes/src/org/jetbrains/kotlin/asJava/KotlinJavaFileStubProvider.java b/compiler/light-classes/src/org/jetbrains/kotlin/asJava/KotlinJavaFileStubProvider.java
index 278c0a1c786..af5ef23396c 100644
--- a/compiler/light-classes/src/org/jetbrains/kotlin/asJava/KotlinJavaFileStubProvider.java
+++ b/compiler/light-classes/src/org/jetbrains/kotlin/asJava/KotlinJavaFileStubProvider.java
@@ -376,7 +376,7 @@ public class KotlinJavaFileStubProvider<T extends WithFileStubAndExtraDiagnostic
                         PackageCodegen packageCodegen = state.getFactory().forPackage(getPackageFqName(), files);
                         JetFile file = classOrObject.getContainingJetFile();
                         Type packagePartType = FileClasses.getFileClassType(state.getFileClassesProvider(), file);
-                        PackageContext context = state.getRootContext().intoPackagePart(packageCodegen.getPackageFragment(), packagePartType);
+                        PackageContext context = state.getRootContext().intoPackagePart(packageCodegen.getPackageFragment(), packagePartType, file);
                         packageCodegen.generateClassOrObject(classOrObject, context);
                         state.getFactory().asList();
                     }
diff --git a/compiler/testData/asJava/lightClasses/nullabilityAnnotations/FileFacade.java b/compiler/testData/asJava/lightClasses/nullabilityAnnotations/FileFacade.java
index 0a0f9dc7619..ceb8eadfb66 100644
--- a/compiler/testData/asJava/lightClasses/nullabilityAnnotations/FileFacade.java
+++ b/compiler/testData/asJava/lightClasses/nullabilityAnnotations/FileFacade.java
@@ -1,14 +1,14 @@
 public final class FileFacadeKt {
     @org.jetbrains.annotations.Nullable
-    static final java.lang.String nullableVal = "";
+    private static final java.lang.String nullableVal = "";
     @org.jetbrains.annotations.Nullable
-    static java.lang.String nullableVar;
+    private static java.lang.String nullableVar;
     @org.jetbrains.annotations.NotNull
-    static final java.lang.String notNullVal = "";
+    private static final java.lang.String notNullVal = "";
     @org.jetbrains.annotations.NotNull
-    static java.lang.String notNullVar;
-    static final java.lang.String privateNn = "";
-    static final java.lang.String privateN = "";
+    private static java.lang.String notNullVar;
+    private static final java.lang.String privateNn = "";
+    private static final java.lang.String privateN = "";
 
     @org.jetbrains.annotations.NotNull
     public static final java.lang.String notNull(@org.jetbrains.annotations.NotNull java.lang.String a) { /* compiled code */ }
diff --git a/compiler/testData/codegen/boxWithStdlib/topLevelPrivate/privateVisibility.kt b/compiler/testData/codegen/boxWithStdlib/topLevelPrivate/privateVisibility.kt
new file mode 100644
index 00000000000..3ec7676598a
--- /dev/null
+++ b/compiler/testData/codegen/boxWithStdlib/topLevelPrivate/privateVisibility.kt
@@ -0,0 +1,18 @@
+// FULL_JDK
+package test
+
+import java.lang.reflect.Modifier
+import kotlin.test.assertTrue
+
+
+private val prop = "O"
+
+private fun test() = "K"
+
+fun box(): String {
+    val clazz = Class.forName("test.PrivateVisibilityKt")
+    assertTrue(Modifier.isPrivate(clazz.getDeclaredMethod("test").modifiers), "Private top level function should be private")
+    assertTrue(Modifier.isPrivate(clazz.getDeclaredField("prop").modifiers), "Backing field for private top level property should be private")
+
+    return "OK"
+}
\ No newline at end of file
diff --git a/compiler/testData/codegen/bytecodeListing/annotations/defaultTargets.txt b/compiler/testData/codegen/bytecodeListing/annotations/defaultTargets.txt
index eb73fe9a8e6..6c834095d60 100644
--- a/compiler/testData/codegen/bytecodeListing/annotations/defaultTargets.txt
+++ b/compiler/testData/codegen/bytecodeListing/annotations/defaultTargets.txt
@@ -23,7 +23,7 @@
 @kotlin.annotation.Target @java.lang.annotation.Retention @java.lang.annotation.Target @kotlin.jvm.internal.KotlinClass Anno
 
 @kotlin.jvm.internal.KotlinFileFacade DefaultTargetsKt {
-    final @Anno field p2: int
+    private final @Anno field p2: int
     method <clinit>(): void
     public final method getP(): int
     public final method getP2(): int
diff --git a/compiler/testData/writeFlags/property/deprecatedFlag/topLevelProperty.kt b/compiler/testData/writeFlags/property/deprecatedFlag/topLevelProperty.kt
index b0c4054bfee..e2115d0fd22 100644
--- a/compiler/testData/writeFlags/property/deprecatedFlag/topLevelProperty.kt
+++ b/compiler/testData/writeFlags/property/deprecatedFlag/topLevelProperty.kt
@@ -3,4 +3,4 @@
 // TESTED_OBJECT_KIND: property
 // TESTED_OBJECTS: TopLevelPropertyKt, test
 // IS_FULL_CONTAINING_CLASS_NAME: false
-// FLAGS: ACC_DEPRECATED, ACC_FINAL, ACC_STATIC
+// FLAGS: ACC_DEPRECATED, ACC_FINAL, ACC_STATIC, ACC_PRIVATE
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/PropertyGenTest.java b/compiler/tests/org/jetbrains/kotlin/codegen/PropertyGenTest.java
index c9566af943e..090305f7fc9 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/PropertyGenTest.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/PropertyGenTest.java
@@ -79,7 +79,7 @@ public class PropertyGenTest extends CodegenTestCase {
         Field field = fields[0];
         field.setAccessible(true);
         assertEquals("x", field.getName());
-        assertEquals(Modifier.STATIC | Modifier.FINAL, field.getModifiers());
+        assertEquals(Modifier.STATIC | Modifier.FINAL | Modifier.PRIVATE, field.getModifiers());
         assertEquals(239, field.get(null));
     }
 
diff --git a/compiler/tests/org/jetbrains/kotlin/codegen/generated/BlackBoxWithStdlibCodegenTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/codegen/generated/BlackBoxWithStdlibCodegenTestGenerated.java
index a304f8fd655..157c3d24c50 100644
--- a/compiler/tests/org/jetbrains/kotlin/codegen/generated/BlackBoxWithStdlibCodegenTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/codegen/generated/BlackBoxWithStdlibCodegenTestGenerated.java
@@ -4666,6 +4666,12 @@ public class BlackBoxWithStdlibCodegenTestGenerated extends AbstractBlackBoxCode
             doTestWithStdlib(fileName);
         }
 
+        @TestMetadata("privateVisibility.kt")
+        public void testPrivateVisibility() throws Exception {
+            String fileName = JetTestUtils.navigationMetadata("compiler/testData/codegen/boxWithStdlib/topLevelPrivate/privateVisibility.kt");
+            doTestWithStdlib(fileName);
+        }
+
         @TestMetadata("syntheticAccessor.kt")
         public void testSyntheticAccessor() throws Exception {
             String fileName = JetTestUtils.navigationMetadata("compiler/testData/codegen/boxWithStdlib/topLevelPrivate/syntheticAccessor.kt");