diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/parsing/JetExpressionParsing.java b/compiler/frontend/src/org/jetbrains/jet/lang/parsing/JetExpressionParsing.java
index 6025a7041f2..8553a248b29 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/parsing/JetExpressionParsing.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/parsing/JetExpressionParsing.java
@@ -976,8 +976,8 @@ public class JetExpressionParsing extends AbstractJetParsing {
 
         if (at(ARROW)) {
             //   { -> ...}
-            advance(); // ARROW
             mark().done(VALUE_PARAMETER_LIST);
+            advance(); // ARROW
             paramsFound = true;
         }
         else if (at(LPAR)) {
diff --git a/compiler/testData/psi/FunctionLiterals_ERR.txt b/compiler/testData/psi/FunctionLiterals_ERR.txt
index 6e00bb48f9e..993b78b4145 100644
--- a/compiler/testData/psi/FunctionLiterals_ERR.txt
+++ b/compiler/testData/psi/FunctionLiterals_ERR.txt
@@ -16,10 +16,10 @@ JetFile: FunctionLiterals_ERR.kt
         FUNCTION_LITERAL
           PsiElement(LBRACE)('{')
           PsiWhiteSpace(' ')
-          PsiElement(ARROW)('->')
-          PsiWhiteSpace(' ')
           VALUE_PARAMETER_LIST
             <empty list>
+          PsiElement(ARROW)('->')
+          PsiWhiteSpace(' ')
           BLOCK
             REFERENCE_EXPRESSION
               PsiElement(IDENTIFIER)('a')
diff --git a/compiler/testData/psi/greatSyntacticShift/functionLiterals.txt b/compiler/testData/psi/greatSyntacticShift/functionLiterals.txt
index 4c0da14cd89..b36ae66229a 100644
--- a/compiler/testData/psi/greatSyntacticShift/functionLiterals.txt
+++ b/compiler/testData/psi/greatSyntacticShift/functionLiterals.txt
@@ -73,10 +73,10 @@ JetFile: functionLiterals.kt
               FUNCTION_LITERAL
                 PsiElement(LBRACE)('{')
                 PsiWhiteSpace(' ')
-                PsiElement(ARROW)('->')
-                PsiWhiteSpace(' ')
                 VALUE_PARAMETER_LIST
                   <empty list>
+                PsiElement(ARROW)('->')
+                PsiWhiteSpace(' ')
                 BLOCK
                   INTEGER_CONSTANT
                     PsiElement(INTEGER_LITERAL)('1')
@@ -110,10 +110,10 @@ JetFile: functionLiterals.kt
             FUNCTION_LITERAL_EXPRESSION
               FUNCTION_LITERAL
                 PsiElement(LBRACE)('{')
-                PsiElement(ARROW)('->')
-                PsiWhiteSpace(' ')
                 VALUE_PARAMETER_LIST
                   <empty list>
+                PsiElement(ARROW)('->')
+                PsiWhiteSpace(' ')
                 BLOCK
                   INTEGER_CONSTANT
                     PsiElement(INTEGER_LITERAL)('1')