diff -r 1aec996cde2d -r f7e573226c2b jitcraft/Parser.cpp
--- a/jitcraft/Parser.cpp	Thu Jul 12 00:38:00 2012 -0700
+++ b/jitcraft/Parser.cpp	Sat Jul 14 18:43:34 2012 -0700
@@ -625,6 +625,8 @@
     if (!expr)
         return NULL;
 
+    encounteredReturn_ = true;
+
     return new (pool_) ReturnStatement(pos, expr);
 }
 
@@ -698,9 +700,6 @@
             break;
         }
 
-        if (!expect(TOK_IF))
-            return NULL;
-
         SourcePosition pos = scanner_.begin();
         if (!expect(TOK_LPAREN))
             return NULL;
@@ -958,6 +957,8 @@
             return NULL;
     }
 
+    encounteredReturn_ = false;
+
     Statement *body = NULL;
     if (token != TOK_FORWARD && token != TOK_NATIVE) {
         body = block();
@@ -966,7 +967,7 @@
     }
 
     scope_ = scope_->enclosing();
-    return new (pool_) FunctionStatement(pos, scope, fun, body, parameters);
+    return new (pool_) FunctionStatement(pos, scope, fun, body, parameters, encounteredReturn_);
 }
 
 ParseTree *