diff --git a/idea/formatter/src/org/jetbrains/kotlin/idea/formatter/kotlinSpacingRules.kt b/idea/formatter/src/org/jetbrains/kotlin/idea/formatter/kotlinSpacingRules.kt
index 4585528addd..047f1eb53e2 100644
--- a/idea/formatter/src/org/jetbrains/kotlin/idea/formatter/kotlinSpacingRules.kt
+++ b/idea/formatter/src/org/jetbrains/kotlin/idea/formatter/kotlinSpacingRules.kt
@@ -197,6 +197,11 @@ fun createSpacingBuilder(settings: CodeStyleSettings, builderUtil: KotlinSpacing
             before(COMMA).spaceIf(kotlinCommonSettings.SPACE_BEFORE_COMMA)
             after(COMMA).spaceIf(kotlinCommonSettings.SPACE_AFTER_COMMA)
 
+
+            val spacesAroundAssignment = if (kotlinCommonSettings.SPACE_AROUND_ASSIGNMENT_OPERATORS) 1 else 0
+            beforeInside(EQ, PROPERTY).spacing(spacesAroundAssignment, spacesAroundAssignment, 0, false, 0)
+            beforeInside(EQ, FUN).spacing(spacesAroundAssignment, spacesAroundAssignment, 0, false, 0)
+
             around(TokenSet.create(EQ, MULTEQ, DIVEQ, PLUSEQ, MINUSEQ, PERCEQ)).spaceIf(kotlinCommonSettings.SPACE_AROUND_ASSIGNMENT_OPERATORS)
             around(TokenSet.create(ANDAND, OROR)).spaceIf(kotlinCommonSettings.SPACE_AROUND_LOGICAL_OPERATORS)
             around(TokenSet.create(EQEQ, EXCLEQ, EQEQEQ, EXCLEQEQEQ)).spaceIf(kotlinCommonSettings.SPACE_AROUND_EQUALITY_OPERATORS)
diff --git a/idea/testData/formatter/PropertyInitializerLineBreak.after.kt b/idea/testData/formatter/PropertyInitializerLineBreak.after.kt
new file mode 100644
index 00000000000..f5b73e7faec
--- /dev/null
+++ b/idea/testData/formatter/PropertyInitializerLineBreak.after.kt
@@ -0,0 +1,6 @@
+val x: Int = 1
+
+fun foo() = 1
+
+fun bar() =
+    1
diff --git a/idea/testData/formatter/PropertyInitializerLineBreak.kt b/idea/testData/formatter/PropertyInitializerLineBreak.kt
new file mode 100644
index 00000000000..c2f3752f400
--- /dev/null
+++ b/idea/testData/formatter/PropertyInitializerLineBreak.kt
@@ -0,0 +1,8 @@
+val x: Int
+   = 1
+
+fun foo()
+    = 1
+
+fun bar() =
+        1
diff --git a/idea/tests/org/jetbrains/kotlin/formatter/FormatterTestGenerated.java b/idea/tests/org/jetbrains/kotlin/formatter/FormatterTestGenerated.java
index 997df135094..e577473e310 100644
--- a/idea/tests/org/jetbrains/kotlin/formatter/FormatterTestGenerated.java
+++ b/idea/tests/org/jetbrains/kotlin/formatter/FormatterTestGenerated.java
@@ -662,6 +662,12 @@ public class FormatterTestGenerated extends AbstractFormatterTest {
             doTest(fileName);
         }
 
+        @TestMetadata("PropertyInitializerLineBreak.after.kt")
+        public void testPropertyInitializerLineBreak() throws Exception {
+            String fileName = KotlinTestUtils.navigationMetadata("idea/testData/formatter/PropertyInitializerLineBreak.after.kt");
+            doTest(fileName);
+        }
+
         @TestMetadata("PropertyTypeParameterList.after.kt")
         public void testPropertyTypeParameterList() throws Exception {
             String fileName = KotlinTestUtils.navigationMetadata("idea/testData/formatter/PropertyTypeParameterList.after.kt");