diff --git a/jerry-core/parser/js/js-parser-internal.h b/jerry-core/parser/js/js-parser-internal.h
index c860f196b..e9f3f2d7e 100644
--- a/jerry-core/parser/js/js-parser-internal.h
+++ b/jerry-core/parser/js/js-parser-internal.h
@@ -51,8 +51,7 @@ typedef enum
   PARSER_HAS_NON_STRICT_ARG = (1u << 6),      /**< the function has arguments which
                                                *   are not supported in strict mode */
   PARSER_ARGUMENTS_NEEDED = (1u << 7),        /**< arguments object must be created */
-  PARSER_ARGUMENTS_NOT_NEEDED = (1u << 8),    /**< arguments object must NOT be created */
-  PARSER_LEXICAL_ENV_NEEDED = (1u << 9),     /**< lexical environment object must be created */
+  PARSER_LEXICAL_ENV_NEEDED = (1u << 9),      /**< lexical environment object must be created */
   PARSER_INSIDE_WITH = (1u << 10),            /**< code block is inside a with statement */
   PARSER_RESOLVE_BASE_FOR_CALLS = (1u << 11), /**< the this object must be resolved when
                                                *   a function without a base object is called */
diff --git a/jerry-core/parser/js/js-parser-statm.c b/jerry-core/parser/js/js-parser-statm.c
index e4ad3aa1e..5eefe6428 100644
--- a/jerry-core/parser/js/js-parser-statm.c
+++ b/jerry-core/parser/js/js-parser-statm.c
@@ -564,11 +564,6 @@ parser_parse_function_statement (parser_context_t *context_p) /**< context */
   }
 #endif /* ENABLED (JERRY_ES2015) */
 
-  if (context_p->lit_object.type == LEXER_LITERAL_OBJECT_ARGUMENTS)
-  {
-    context_p->status_flags |= PARSER_ARGUMENTS_NOT_NEEDED;
-  }
-
 #if ENABLED (JERRY_ES2015_MODULE_SYSTEM)
   if (context_p->status_flags & PARSER_MODULE_STORE_IDENT)
   {
diff --git a/jerry-core/parser/js/js-parser.c b/jerry-core/parser/js/js-parser.c
index 98a4319c8..7f3bd81ad 100644
--- a/jerry-core/parser/js/js-parser.c
+++ b/jerry-core/parser/js/js-parser.c
@@ -53,7 +53,6 @@ parser_compute_indicies (parser_context_t *context_p, /**< context */
 {
   parser_list_iterator_t literal_iterator;
   lexer_literal_t *literal_p;
-  uint32_t status_flags = context_p->status_flags;
 
   uint16_t ident_count = 0;
   uint16_t const_literal_count = 0;
@@ -62,12 +61,6 @@ parser_compute_indicies (parser_context_t *context_p, /**< context */
   uint16_t const_literal_index;
   uint16_t literal_index;
 
-  if (status_flags & PARSER_ARGUMENTS_NOT_NEEDED)
-  {
-    status_flags &= (uint32_t) ~PARSER_ARGUMENTS_NEEDED;
-    context_p->status_flags = status_flags;
-  }
-
   /* First phase: count the number of items in each group. */
   parser_list_iterator_init (&context_p->literal_pool, &literal_iterator);
   while ((literal_p = (lexer_literal_t *) parser_list_iterator_next (&literal_iterator)))
@@ -115,6 +108,7 @@ parser_compute_indicies (parser_context_t *context_p, /**< context */
 
 #if !ENABLED (JERRY_PARSER_DUMP_BYTE_CODE)
     const uint8_t *char_p = literal_p->u.char_p;
+    uint32_t status_flags = context_p->status_flags;
 
     if ((literal_p->status_flags & LEXER_FLAG_SOURCE_PTR)
         && literal_p->prop.length < 0xfff)
@@ -1763,14 +1757,7 @@ parser_parse_source (const uint8_t *arg_list_p, /**< function argument list */
     error_location_p->error = PARSER_ERR_NO_ERROR;
   }
 
-  if (arg_list_p == NULL)
-  {
-    context.status_flags = PARSER_ARGUMENTS_NOT_NEEDED;
-  }
-  else
-  {
-    context.status_flags = PARSER_IS_FUNCTION;
-  }
+  context.status_flags = (arg_list_p == NULL) ? 0 : PARSER_IS_FUNCTION;
 
 #if ENABLED (JERRY_ES2015)
   context.status_flags |= PARSER_GET_CLASS_PARSER_OPTS (parse_opts);
@@ -1982,6 +1969,8 @@ parser_parse_source (const uint8_t *arg_list_p, /**< function argument list */
     JERRY_ASSERT (context.status_flags & PARSER_SCANNING_SUCCESSFUL);
 #endif /* !JERRY_NDEBUG */
 
+    JERRY_ASSERT (arg_list_p != NULL || !(context.status_flags & PARSER_ARGUMENTS_NEEDED));
+
 #if ENABLED (JERRY_PARSER_DUMP_BYTE_CODE)
     if (context.is_show_opcodes)
     {