diff --git a/test/annexB/language/statements/function/default-parameters-emulates-undefined.js b/test/annexB/language/statements/function/default-parameters-emulates-undefined.js
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+++ b/test/annexB/language/statements/function/default-parameters-emulates-undefined.js
@@ -0,0 +1,72 @@
+// Copyright (C) 2020 Alexey Shvayka. All rights reserved.
+// This code is governed by the BSD license found in the LICENSE file.
+/*---
+esid: sec-function-definitions-runtime-semantics-instantiatefunctionobject
+description: >
+  Initializer is not evaluated when argument is an object with
+  [[IsHTMLDDA]] internal slot.
+info: |
+  FunctionDeclaration :
+    function BindingIdentifier ( FormalParameters ) { FunctionBody }
+
+    [...]
+    3. Let F be FunctionCreate(Normal, FormalParameters, FunctionBody,
+    scope, strict).
+    [...]
+
+  [[Call]] ( thisArgument, argumentsList)
+
+  [...]
+  7. Let result be OrdinaryCallEvaluateBody(F, argumentsList).
+  [...]
+
+  OrdinaryCallEvaluateBody ( F, argumentsList )
+
+  1. Let status be FunctionDeclarationInstantiation(F, argumentsList).
+  [...]
+
+  FunctionDeclarationInstantiation(func, argumentsList)
+
+  [...]
+  23. Let iteratorRecord be Record {[[iterator]]:
+  CreateListIterator(argumentsList), [[done]]: false}.
+  24. If hasDuplicates is true, then
+    [...]
+  25. Else,
+    b. Let formalStatus be IteratorBindingInitialization for formals with
+    iteratorRecord and env as arguments.
+  [...]
+
+  Runtime Semantics: IteratorBindingInitialization
+
+  FormalsList : FormalsList , FormalParameter
+
+  [...]
+  23. Let iteratorRecord be Record {[[Iterator]]:
+  CreateListIterator(argumentsList), [[Done]]: false}.
+  24. If hasDuplicates is true, then
+    [...]
+  25. Else,
+    a. Perform ? IteratorBindingInitialization for formals with
+    iteratorRecord and env as arguments.
+  [...]
+features: [default-parameters, IsHTMLDDA]
+---*/
+
+let initCount = 0;
+const counter = function() {
+  initCount += 1;
+};
+
+const arrow = (x = counter()) => x;
+const IsHTMLDDA = $262.IsHTMLDDA;
+
+assert.sameValue(arrow(IsHTMLDDA), IsHTMLDDA);
+assert.sameValue(initCount, 0);
+
+function fn(x, y = counter()) {
+  return y;
+}
+
+assert.sameValue(fn(1, IsHTMLDDA), IsHTMLDDA);
+assert.sameValue(initCount, 0);