diff --git a/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/AssignmentGenerator.kt b/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/AssignmentGenerator.kt
index 6b741a67337..4885061fec9 100644
--- a/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/AssignmentGenerator.kt
+++ b/compiler/ir/ir.psi2ir/src/org/jetbrains/kotlin/psi2ir/generators/AssignmentGenerator.kt
@@ -131,27 +131,29 @@ class AssignmentGenerator(statementGenerator: StatementGenerator) : StatementGen
             origin: IrStatementOrigin,
             ktLeft: KtExpression,
             resolvedCall: ResolvedCall<*>
-    ): AssignmentReceiver {
-        if (isValInitializationInConstructor(descriptor, resolvedCall)) {
-            val thisClass = getThisClass()
-            val irThis = IrGetValueImpl(ktLeft.startOffset, ktLeft.endOffset, thisClass.thisAsReceiverParameter)
-            return BackingFieldLValue(ktLeft.startOffset, ktLeft.endOffset, descriptor,
-                                      RematerializableValue(irThis), null)
-        }
+    ): AssignmentReceiver =
+            if (isValInitializationInConstructor(descriptor, resolvedCall)) {
+                val thisClass = getThisClass()
+                val irThis = IrGetValueImpl(ktLeft.startOffset, ktLeft.endOffset, thisClass.thisAsReceiverParameter)
 
-        val propertyReceiver = statementGenerator.generateCallReceiver(
-                ktLeft, descriptor, resolvedCall.dispatchReceiver, resolvedCall.extensionReceiver,
-                isSafe = resolvedCall.call.isSafeCall(),
-                isAssignmentReceiver = true)
+                BackingFieldLValue(ktLeft.startOffset, ktLeft.endOffset, descriptor,
+                                   RematerializableValue(irThis), null)
+            }
+            else {
+                val propertyReceiver = statementGenerator.generateCallReceiver(
+                        ktLeft, descriptor, resolvedCall.dispatchReceiver, resolvedCall.extensionReceiver,
+                        isSafe = resolvedCall.call.isSafeCall(),
+                        isAssignmentReceiver = true)
 
-        val superQualifier = getSuperQualifier(resolvedCall)
+                val superQualifier = getSuperQualifier(resolvedCall)
 
-        return SimplePropertyLValue(context, scope, ktLeft.startOffset, ktLeft.endOffset, origin, descriptor,
-                                    getTypeArguments(resolvedCall), propertyReceiver, superQualifier)
-    }
+                SimplePropertyLValue(context, scope, ktLeft.startOffset, ktLeft.endOffset, origin, descriptor,
+                                     getTypeArguments(resolvedCall), propertyReceiver, superQualifier)
+            }
 
     private fun isValInitializationInConstructor(descriptor: PropertyDescriptor, resolvedCall: ResolvedCall<*>): Boolean =
             !descriptor.isVar &&
+            descriptor.kind != CallableMemberDescriptor.Kind.FAKE_OVERRIDE &&
             statementGenerator.scopeOwner.let { it is ConstructorDescriptor || it is ClassDescriptor } &&
             resolvedCall.dispatchReceiver is ThisClassReceiver
 
diff --git a/compiler/testData/ir/irText/expressions/kt16904.kt b/compiler/testData/ir/irText/expressions/kt16904.kt
new file mode 100644
index 00000000000..8039463c9f5
--- /dev/null
+++ b/compiler/testData/ir/irText/expressions/kt16904.kt
@@ -0,0 +1,30 @@
+// FILE: J.java
+
+public class J {
+    public int field = 0;
+}
+
+// FILE: kt16904.kt
+
+abstract class A {
+    val x = B()
+    var y = 0
+}
+
+class B {
+    operator fun plusAssign(x: Int) {
+    }
+}
+
+class Test1 : A {
+    constructor() {
+        x += 42
+        y += 42
+    }
+}
+
+class Test2 : J() {
+    init {
+        field = 42
+    }
+}
\ No newline at end of file
diff --git a/compiler/testData/ir/irText/expressions/kt16904.txt b/compiler/testData/ir/irText/expressions/kt16904.txt
new file mode 100644
index 00000000000..879594cb6f6
--- /dev/null
+++ b/compiler/testData/ir/irText/expressions/kt16904.txt
@@ -0,0 +1,67 @@
+FILE /kt16904.kt
+  CLASS CLASS A
+    CONSTRUCTOR public constructor A()
+      BLOCK_BODY
+        DELEGATING_CONSTRUCTOR_CALL 'constructor Any()'
+        INSTANCE_INITIALIZER_CALL classDescriptor='A'
+    PROPERTY public final val x: B
+      FIELD PROPERTY_BACKING_FIELD public final val x: B
+        EXPRESSION_BODY
+          CALL 'constructor B()' type=B origin=null
+      FUN DEFAULT_PROPERTY_ACCESSOR public final fun <get-x>(): B
+        BLOCK_BODY
+          RETURN type=kotlin.Nothing from='<get-x>(): B'
+            GET_FIELD 'x: B' type=B origin=null
+              receiver: GET_VAR '<receiver: A>' type=A origin=null
+    PROPERTY public final var y: kotlin.Int
+      FIELD PROPERTY_BACKING_FIELD public final var y: kotlin.Int
+        EXPRESSION_BODY
+          CONST Int type=kotlin.Int value='0'
+      FUN DEFAULT_PROPERTY_ACCESSOR public final fun <get-y>(): kotlin.Int
+        BLOCK_BODY
+          RETURN type=kotlin.Nothing from='<get-y>(): Int'
+            GET_FIELD 'y: Int' type=kotlin.Int origin=null
+              receiver: GET_VAR '<receiver: A>' type=A origin=null
+      FUN DEFAULT_PROPERTY_ACCESSOR public final fun <set-y>(<set-?>: kotlin.Int): kotlin.Unit
+        BLOCK_BODY
+          SET_FIELD 'y: Int' type=kotlin.Unit origin=null
+            receiver: GET_VAR '<receiver: A>' type=A origin=null
+            value: GET_VAR 'value-parameter <set-?>: Int' type=kotlin.Int origin=null
+  CLASS CLASS B
+    CONSTRUCTOR public constructor B()
+      BLOCK_BODY
+        DELEGATING_CONSTRUCTOR_CALL 'constructor Any()'
+        INSTANCE_INITIALIZER_CALL classDescriptor='B'
+    FUN public final operator fun plusAssign(x: kotlin.Int): kotlin.Unit
+      BLOCK_BODY
+  CLASS CLASS Test1
+    CONSTRUCTOR public constructor Test1()
+      BLOCK_BODY
+        DELEGATING_CONSTRUCTOR_CALL 'constructor A()'
+        INSTANCE_INITIALIZER_CALL classDescriptor='Test1'
+        BLOCK type=kotlin.Unit origin=PLUSEQ
+          VAR IR_TEMPORARY_VARIABLE val tmp0_this: Test1
+            GET_VAR '<receiver: Test1>' type=Test1 origin=null
+          CALL 'plusAssign(Int): Unit' type=kotlin.Unit origin=PLUSEQ
+            $this: CALL '<get-x>(): B' type=B origin=PLUSEQ
+              $this: GET_VAR 'tmp0_this: Test1' type=Test1 origin=null
+            x: CONST Int type=kotlin.Int value='42'
+        BLOCK type=kotlin.Unit origin=PLUSEQ
+          VAR IR_TEMPORARY_VARIABLE val tmp1_this: Test1
+            GET_VAR '<receiver: Test1>' type=Test1 origin=null
+          CALL '<set-y>(Int): Unit' type=kotlin.Unit origin=PLUSEQ
+            $this: GET_VAR 'tmp1_this: Test1' type=Test1 origin=null
+            <set-?>: CALL 'plus(Int): Int' type=kotlin.Int origin=PLUSEQ
+              $this: CALL '<get-y>(): Int' type=kotlin.Int origin=PLUSEQ
+                $this: GET_VAR 'tmp1_this: Test1' type=Test1 origin=null
+              other: CONST Int type=kotlin.Int value='42'
+  CLASS CLASS Test2
+    CONSTRUCTOR public constructor Test2()
+      BLOCK_BODY
+        DELEGATING_CONSTRUCTOR_CALL 'constructor J()'
+        INSTANCE_INITIALIZER_CALL classDescriptor='Test2'
+    ANONYMOUS_INITIALIZER Test2
+      BLOCK_BODY
+        SET_FIELD 'field: Int' type=kotlin.Unit origin=EQ
+          receiver: GET_VAR '<receiver: Test2>' type=Test2 origin=null
+          value: CONST Int type=kotlin.Int value='42'
diff --git a/compiler/tests/org/jetbrains/kotlin/ir/IrTextTestCaseGenerated.java b/compiler/tests/org/jetbrains/kotlin/ir/IrTextTestCaseGenerated.java
index 30d643f507f..959d1b6f7e2 100644
--- a/compiler/tests/org/jetbrains/kotlin/ir/IrTextTestCaseGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/ir/IrTextTestCaseGenerated.java
@@ -602,6 +602,12 @@ public class IrTextTestCaseGenerated extends AbstractIrTextTestCase {
             doTest(fileName);
         }
 
+        @TestMetadata("kt16904.kt")
+        public void testKt16904() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/ir/irText/expressions/kt16904.kt");
+            doTest(fileName);
+        }
+
         @TestMetadata("literals.kt")
         public void testLiterals() throws Exception {
             String fileName = KotlinTestUtils.navigationMetadata("compiler/testData/ir/irText/expressions/literals.kt");