diff --git a/compiler/frontend/src/org/jetbrains/kotlin/resolve/BodyResolver.java b/compiler/frontend/src/org/jetbrains/kotlin/resolve/BodyResolver.java
index 3213dd3dc7a..2b0b9894d64 100644
--- a/compiler/frontend/src/org/jetbrains/kotlin/resolve/BodyResolver.java
+++ b/compiler/frontend/src/org/jetbrains/kotlin/resolve/BodyResolver.java
@@ -427,6 +427,17 @@ public class BodyResolver {
             JetTypeReference typeReference = entry.getKey();
             JetType supertype = entry.getValue();
 
+            JetTypeElement typeElement = typeReference.getTypeElement();
+            if (typeElement instanceof JetFunctionType) {
+                for (JetParameter parameter : ((JetFunctionType) typeElement).getParameters()) {
+                    PsiElement nameIdentifier = parameter.getNameIdentifier();
+
+                    if (nameIdentifier != null) {
+                        trace.report(Errors.UNSUPPORTED.on(nameIdentifier, "named parameter in function type in supertype position"));
+                    }
+                }
+            }
+
             boolean addSupertype = true;
 
             ClassDescriptor classDescriptor = TypeUtils.getClassDescriptor(supertype);
diff --git a/compiler/testData/diagnostics/tests/DefaultValueForParameterInFunctionType.kt b/compiler/testData/diagnostics/tests/DefaultValueForParameterInFunctionType.kt
index f9b0f6f68ac..a90120e3c81 100644
--- a/compiler/testData/diagnostics/tests/DefaultValueForParameterInFunctionType.kt
+++ b/compiler/testData/diagnostics/tests/DefaultValueForParameterInFunctionType.kt
@@ -10,7 +10,7 @@ fun inParamNested(fn1: (fn2: (n: Int = <!UNSUPPORTED!>0<!>)->Unit)->Unit) {}
 
 fun inReturn(): (x: Int = <!UNSUPPORTED!>0<!>)->Unit = {}
 
-class A : (x: Int = <!UNSUPPORTED!>0<!>)->Unit {
+class A : (Int)->Unit {
     override fun invoke(p1: Int) {
         var lambda: (x: Int = <!UNSUPPORTED!>0<!>)->Unit = {}
     }
diff --git a/compiler/testData/diagnostics/tests/NamedFunctionTypeParameterInSupertype.kt b/compiler/testData/diagnostics/tests/NamedFunctionTypeParameterInSupertype.kt
new file mode 100644
index 00000000000..c9567ff0765
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/NamedFunctionTypeParameterInSupertype.kt
@@ -0,0 +1,9 @@
+abstract class A : Function1<Any, Unit>
+
+abstract class B : (Int)->Unit
+
+// Named parameter is prohibited because of possible inconsistency between
+// type declaration and actual override
+class C : (<!UNSUPPORTED!>x<!>: Int)->Unit {
+    override fun invoke(p1: Int): Unit {}
+}
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/NamedFunctionTypeParameterInSupertype.txt b/compiler/testData/diagnostics/tests/NamedFunctionTypeParameterInSupertype.txt
new file mode 100644
index 00000000000..c53915ae9aa
--- /dev/null
+++ b/compiler/testData/diagnostics/tests/NamedFunctionTypeParameterInSupertype.txt
@@ -0,0 +1,25 @@
+package
+
+public abstract class A : (kotlin.Any) -> kotlin.Unit {
+    public constructor A()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public abstract override /*1*/ /*fake_override*/ fun invoke(/*0*/ p1: kotlin.Any): kotlin.Unit
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public abstract class B : (kotlin.Int) -> kotlin.Unit {
+    public constructor B()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public abstract override /*1*/ /*fake_override*/ fun invoke(/*0*/ p1: kotlin.Int): kotlin.Unit
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
+
+public final class C : (kotlin.Int) -> kotlin.Unit {
+    public constructor C()
+    public open override /*1*/ /*fake_override*/ fun equals(/*0*/ other: kotlin.Any?): kotlin.Boolean
+    public open override /*1*/ /*fake_override*/ fun hashCode(): kotlin.Int
+    public open override /*1*/ fun invoke(/*0*/ p1: kotlin.Int): kotlin.Unit
+    public open override /*1*/ /*fake_override*/ fun toString(): kotlin.String
+}
diff --git a/compiler/testData/diagnostics/tests/incompleteCode/diagnosticWithSyntaxError/funcitonTypes.kt b/compiler/testData/diagnostics/tests/incompleteCode/diagnosticWithSyntaxError/funcitonTypes.kt
index 36c7d2ced15..09f9ebd4fff 100644
--- a/compiler/testData/diagnostics/tests/incompleteCode/diagnosticWithSyntaxError/funcitonTypes.kt
+++ b/compiler/testData/diagnostics/tests/incompleteCode/diagnosticWithSyntaxError/funcitonTypes.kt
@@ -1 +1 @@
-class A : (categoryName: <!SYNTAX!><!>)<!SYNTAX!><!> <!SYNTAX!><!>{<!SYNTAX!><!>
\ No newline at end of file
+class A : (<!UNSUPPORTED!>categoryName<!>: <!SYNTAX!><!>)<!SYNTAX!><!> <!SYNTAX!><!>{<!SYNTAX!><!>
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/incompleteCode/diagnosticWithSyntaxError/typeReferenceError.kt b/compiler/testData/diagnostics/tests/incompleteCode/diagnosticWithSyntaxError/typeReferenceError.kt
index d01e25e24dc..5fc835b5310 100644
--- a/compiler/testData/diagnostics/tests/incompleteCode/diagnosticWithSyntaxError/typeReferenceError.kt
+++ b/compiler/testData/diagnostics/tests/incompleteCode/diagnosticWithSyntaxError/typeReferenceError.kt
@@ -1,3 +1,3 @@
 package typeReferenceError
 
-<!ABSTRACT_MEMBER_NOT_IMPLEMENTED!>class Pair<!><<!SYNTAX!><!>:(<!UNSUPPORTED!>val<!> c: <!SYNTAX!><!SYNTAX!><!>fun<!><!SYNTAX!><!> <!UNRESOLVED_REFERENCE!>main<!>()
\ No newline at end of file
+<!ABSTRACT_MEMBER_NOT_IMPLEMENTED!>class Pair<!><<!SYNTAX!><!>:(<!UNSUPPORTED!>val<!> <!UNSUPPORTED!>c<!>: <!SYNTAX!><!SYNTAX!><!>fun<!><!SYNTAX!><!> <!UNRESOLVED_REFERENCE!>main<!>()
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/modifiers/modifierOnParameterInFunctionType.kt b/compiler/testData/diagnostics/tests/modifiers/modifierOnParameterInFunctionType.kt
index 10a3ad8302f..d70d5650adf 100644
--- a/compiler/testData/diagnostics/tests/modifiers/modifierOnParameterInFunctionType.kt
+++ b/compiler/testData/diagnostics/tests/modifiers/modifierOnParameterInFunctionType.kt
@@ -10,7 +10,7 @@ fun inParamNested(fn1: (fn2: (<!UNSUPPORTED!>vararg<!> n: Int)->Unit)->Unit) {}
 
 fun inReturn(): (<!UNSUPPORTED!>vararg<!> x: Int)->Unit = {}
 
-class A : (<!UNSUPPORTED!>vararg<!> x: Int)->Unit {
+class A : (<!UNSUPPORTED!>vararg<!> Int)->Unit {
     override fun invoke(p1: Int) {
         var lambda: (<!UNSUPPORTED!>vararg<!> x: Int)->Unit = {}
     }
diff --git a/compiler/tests/org/jetbrains/kotlin/checkers/JetDiagnosticsTestGenerated.java b/compiler/tests/org/jetbrains/kotlin/checkers/JetDiagnosticsTestGenerated.java
index fd9dd0ef3d5..4f465311dde 100644
--- a/compiler/tests/org/jetbrains/kotlin/checkers/JetDiagnosticsTestGenerated.java
+++ b/compiler/tests/org/jetbrains/kotlin/checkers/JetDiagnosticsTestGenerated.java
@@ -379,6 +379,12 @@ public class JetDiagnosticsTestGenerated extends AbstractJetDiagnosticsTest {
             doTest(fileName);
         }
 
+        @TestMetadata("NamedFunctionTypeParameterInSupertype.kt")
+        public void testNamedFunctionTypeParameterInSupertype() throws Exception {
+            String fileName = JetTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/NamedFunctionTypeParameterInSupertype.kt");
+            doTest(fileName);
+        }
+
         @TestMetadata("Nullability.kt")
         public void testNullability() throws Exception {
             String fileName = JetTestUtils.navigationMetadata("compiler/testData/diagnostics/tests/Nullability.kt");
diff --git a/idea/src/org/jetbrains/kotlin/idea/refactoring/move/moveTopLevelDeclarations/MoveKotlinTopLevelDeclarationsProcessor.kt b/idea/src/org/jetbrains/kotlin/idea/refactoring/move/moveTopLevelDeclarations/MoveKotlinTopLevelDeclarationsProcessor.kt
index 0e32fc802f7..63a8517ca9d 100644
--- a/idea/src/org/jetbrains/kotlin/idea/refactoring/move/moveTopLevelDeclarations/MoveKotlinTopLevelDeclarationsProcessor.kt
+++ b/idea/src/org/jetbrains/kotlin/idea/refactoring/move/moveTopLevelDeclarations/MoveKotlinTopLevelDeclarationsProcessor.kt
@@ -61,11 +61,9 @@ import org.jetbrains.kotlin.psi.psiUtil.isInsideOf
 import org.jetbrains.kotlin.psi.psiUtil.isPrivate
 import org.jetbrains.kotlin.resolve.BindingContext
 import org.jetbrains.kotlin.utils.keysToMap
-import java.util.ArrayList
-import java.util.HashMap
-import java.util.HashSet
+import java.util.*
 
-interface Mover: (originalElement: JetNamedDeclaration, targetFile: JetFile) -> JetNamedDeclaration {
+interface Mover: (JetNamedDeclaration, JetFile) -> JetNamedDeclaration {
     object Default: Mover {
         override fun invoke(originalElement: JetNamedDeclaration, targetFile: JetFile): JetNamedDeclaration {
             val newElement = targetFile.add(originalElement) as JetNamedDeclaration