diff --git a/libsolidity/analysis/ReferencesResolver.cpp b/libsolidity/analysis/ReferencesResolver.cpp
index b888ecd6b..5458c1b0c 100644
--- a/libsolidity/analysis/ReferencesResolver.cpp
+++ b/libsolidity/analysis/ReferencesResolver.cpp
@@ -262,8 +262,6 @@ bool ReferencesResolver::visit(InlineAssembly const& _inlineAssembly)
 				return size_t(-1);
 			}
 			declarations = m_resolver.nameFromCurrentScope(realName);
-			if (!dynamic_cast<VariableDeclaration const*>(declarations.front()))
-				return size_t(-1);
 		}
 		if (declarations.size() != 1)
 			return size_t(-1);
diff --git a/libsolidity/analysis/TypeChecker.cpp b/libsolidity/analysis/TypeChecker.cpp
index 7cec7c434..d98d6af1a 100644
--- a/libsolidity/analysis/TypeChecker.cpp
+++ b/libsolidity/analysis/TypeChecker.cpp
@@ -867,6 +867,7 @@ bool TypeChecker::visit(InlineAssembly const& _inlineAssembly)
 			return size_t(-1);
 		Declaration const* declaration = ref->second.declaration;
 		solAssert(!!declaration, "");
+		bool requiresStorage = ref->second.isSlot || ref->second.isOffset;
 		if (auto var = dynamic_cast<VariableDeclaration const*>(declaration))
 		{
 			if (var->isConstant())
@@ -874,7 +875,7 @@ bool TypeChecker::visit(InlineAssembly const& _inlineAssembly)
 				m_errorReporter.typeError(_identifier.location, "Constant variables not supported by inline assembly.");
 				return size_t(-1);
 			}
-			else if (ref->second.isSlot || ref->second.isOffset)
+			else if (requiresStorage)
 			{
 				if (!var->isStateVariable() && !var->type()->dataStoredIn(DataLocation::Storage))
 				{
@@ -906,6 +907,11 @@ bool TypeChecker::visit(InlineAssembly const& _inlineAssembly)
 				return size_t(-1);
 			}
 		}
+		else if (requiresStorage)
+		{
+			m_errorReporter.typeError(_identifier.location, "The suffixes _offset and _slot can only be used on storage variables.");
+			return size_t(-1);
+		}
 		else if (_context == julia::IdentifierContext::LValue)
 		{
 			m_errorReporter.typeError(_identifier.location, "Only local variables can be assigned to in inline assembly.");
diff --git a/test/libsolidity/syntaxTests/inlineAssembly/storage_reference_on_function.sol b/test/libsolidity/syntaxTests/inlineAssembly/storage_reference_on_function.sol
index 6838e7a4c..9165654fb 100644
--- a/test/libsolidity/syntaxTests/inlineAssembly/storage_reference_on_function.sol
+++ b/test/libsolidity/syntaxTests/inlineAssembly/storage_reference_on_function.sol
@@ -6,4 +6,4 @@ contract C {
     }
 }
 // ----
-// DeclarationError: (84-90): Identifier not found.
+// TypeError: (84-90): The suffixes _offset and _slot can only be used on storage variables.