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 50cebfb33bf..c149041b888 100644
--- a/idea/formatter/src/org/jetbrains/kotlin/idea/formatter/kotlinSpacingRules.kt
+++ b/idea/formatter/src/org/jetbrains/kotlin/idea/formatter/kotlinSpacingRules.kt
@@ -399,20 +399,16 @@ fun createSpacingBuilder(settings: CodeStyleSettings, builderUtil: KotlinSpacing
 
             inPosition(parent = FUNCTION_LITERAL,
                        left = LBRACE)
-                    .customRule {
-                _, _, right ->
+                    .customRule { _, _, right ->
                 val rightNode = right.node!!
                 val rightType = rightNode.elementType
-                var numSpaces = spacesInSimpleFunction
+                val numSpaces = spacesInSimpleFunction
                 if (rightType == VALUE_PARAMETER_LIST) {
-                    val firstParamListNode = rightNode.firstChildNode
-                    if (firstParamListNode != null && firstParamListNode.elementType == LPAR) {
-                        // Don't put space for situation {<here>(a: Int) -> a }
-                        numSpaces = 0
-                    }
+                    createSpacing(numSpaces, keepLineBreaks = false)
+                }
+                else {
+                    createSpacing(numSpaces)
                 }
-
-                createSpacing(numSpaces)
             }
 
             inPosition(parent = CLASS_BODY, right = RBRACE).lineBreakIfLineBreakInParent(numSpacesOtherwise = 1)
diff --git a/idea/testData/formatter/BinaryExpressionAlignmentSpread.after.kt b/idea/testData/formatter/BinaryExpressionAlignmentSpread.after.kt
index ca13118db74..5cddef572a1 100644
--- a/idea/testData/formatter/BinaryExpressionAlignmentSpread.after.kt
+++ b/idea/testData/formatter/BinaryExpressionAlignmentSpread.after.kt
@@ -7,8 +7,7 @@ fun test() {
         }
     }
 
-    2 ?: some {
-        s ->
+    2 ?: some { s ->
         val a = 12
     }
 }
diff --git a/idea/testData/intentions/destructuringInLambda/noItVariables.kt.after b/idea/testData/intentions/destructuringInLambda/noItVariables.kt.after
index 5bc011c2388..0024f4c1a0b 100644
--- a/idea/testData/intentions/destructuringInLambda/noItVariables.kt.after
+++ b/idea/testData/intentions/destructuringInLambda/noItVariables.kt.after
@@ -4,7 +4,6 @@ data class XY(val x: String, val y: String)
 
 fun convert(xy: XY, foo: (XY) -> Unit) = foo(xy)
 
-fun foo(xy: XY) = convert(xy) {
-    (x, y) ->
+fun foo(xy: XY) = convert(xy) { (x, y) ->
     println(x + y)
 }
\ No newline at end of file
diff --git a/idea/testData/intentions/destructuringInLambda/noItWithDestructuring.kt.after b/idea/testData/intentions/destructuringInLambda/noItWithDestructuring.kt.after
index 7dfd536c73c..41cc506ee9d 100644
--- a/idea/testData/intentions/destructuringInLambda/noItWithDestructuring.kt.after
+++ b/idea/testData/intentions/destructuringInLambda/noItWithDestructuring.kt.after
@@ -2,7 +2,6 @@ data class XY(val x: String, val y: String)
 
 fun convert(xy: XY, foo: (XY) -> String) = foo(xy)
 
-fun foo(xy: XY) = convert(xy) {
-    (x, y) ->
+fun foo(xy: XY) = convert(xy) { (x, y) ->
     x + y
 }
\ No newline at end of file
diff --git a/idea/testData/intentions/specifyExplicitLambdaSignature/emptyParamListWithWhiteSpace.kt.after b/idea/testData/intentions/specifyExplicitLambdaSignature/emptyParamListWithWhiteSpace.kt.after
index e26175c20b7..c9ddc95b4b4 100644
--- a/idea/testData/intentions/specifyExplicitLambdaSignature/emptyParamListWithWhiteSpace.kt.after
+++ b/idea/testData/intentions/specifyExplicitLambdaSignature/emptyParamListWithWhiteSpace.kt.after
@@ -1,6 +1,5 @@
 fun main() {
-    val oom: (Int)->Int = {
-        it: Int ->
+    val oom: (Int)->Int = { it: Int ->
         it * 2
     }
 }
\ No newline at end of file
diff --git a/idea/testData/intentions/specifyExplicitLambdaSignature/manyNewlines.kt.after b/idea/testData/intentions/specifyExplicitLambdaSignature/manyNewlines.kt.after
index 614881f168c..4b9626c9d4e 100644
--- a/idea/testData/intentions/specifyExplicitLambdaSignature/manyNewlines.kt.after
+++ b/idea/testData/intentions/specifyExplicitLambdaSignature/manyNewlines.kt.after
@@ -1,5 +1,4 @@
-val foo: (Long) -> String = {
-    it: Long ->
+val foo: (Long) -> String = { it: Long ->
 
 
     it.toString()
diff --git a/idea/testData/refactoring/inline/inlineVariableOrProperty/explicateParameterTypes/ItMultiLine.kt.after b/idea/testData/refactoring/inline/inlineVariableOrProperty/explicateParameterTypes/ItMultiLine.kt.after
index 9a673a154e4..76f5702e37b 100644
--- a/idea/testData/refactoring/inline/inlineVariableOrProperty/explicateParameterTypes/ItMultiLine.kt.after
+++ b/idea/testData/refactoring/inline/inlineVariableOrProperty/explicateParameterTypes/ItMultiLine.kt.after
@@ -1,6 +1,5 @@
 fun foo() {
-    val ff = {
-        it: Int ->
+    val ff = { it: Int ->
         it
     }
 }
diff --git a/idea/tests/org/jetbrains/kotlin/idea/codeInsight/smartEnter/SmartEnterTest.kt b/idea/tests/org/jetbrains/kotlin/idea/codeInsight/smartEnter/SmartEnterTest.kt
index c47d98ca51d..e6cdd017517 100644
--- a/idea/tests/org/jetbrains/kotlin/idea/codeInsight/smartEnter/SmartEnterTest.kt
+++ b/idea/tests/org/jetbrains/kotlin/idea/codeInsight/smartEnter/SmartEnterTest.kt
@@ -986,13 +986,11 @@ class SmartEnterTest : KotlinLightCodeInsightFixtureTestCase() {
 
     fun testInLambda2() = doFunTest(
             """
-            some {
-                p<caret> ->
+            some { p<caret> ->
             }
             """,
             """
-            some {
-                p ->
+            some { p ->
                 <caret>
             }
             """
@@ -1000,13 +998,11 @@ class SmartEnterTest : KotlinLightCodeInsightFixtureTestCase() {
 
     fun testInLambda3() = doFunTest(
             """
-            some {
-                (<caret>p: Int) : Int ->
+            some { (<caret>p: Int) : Int ->
             }
             """,
             """
-            some {
-                (p: Int) : Int ->
+            some { (p: Int) : Int ->
                 <caret>
             }
             """