diff --git a/flang/lib/Semantics/check-data.cpp b/flang/lib/Semantics/check-data.cpp
index d6f1351c12d3c..5459290e59103 100644
--- a/flang/lib/Semantics/check-data.cpp
+++ b/flang/lib/Semantics/check-data.cpp
@@ -257,9 +257,7 @@ void DataChecker::Leave(const parser::DataStmtSet &set) {
   currentSetHasFatalErrors_ = false;
 }
 
-// Handle legacy DATA-style initialization, e.g. REAL PI/3.14159/, for
-// variables and components (esp. for DEC STRUCTUREs)
-template <typename A> void DataChecker::LegacyDataInit(const A &decl) {
+void DataChecker::Leave(const parser::EntityDecl &decl) {
   if (const auto &init{
           std::get<std::optional<parser::Initialization>>(decl.t)}) {
     const Symbol *name{std::get<parser::Name>(decl.t).symbol};
@@ -272,14 +270,6 @@ template <typename A> void DataChecker::LegacyDataInit(const A &decl) {
   }
 }
 
-void DataChecker::Leave(const parser::ComponentDecl &decl) {
-  LegacyDataInit(decl);
-}
-
-void DataChecker::Leave(const parser::EntityDecl &decl) {
-  LegacyDataInit(decl);
-}
-
 void DataChecker::CompileDataInitializationsIntoInitializers() {
   ConvertToInitializers(inits_, exprAnalyzer_);
 }
diff --git a/flang/lib/Semantics/check-data.h b/flang/lib/Semantics/check-data.h
index 479d32568fa66..8cd2ac912f1f8 100644
--- a/flang/lib/Semantics/check-data.h
+++ b/flang/lib/Semantics/check-data.h
@@ -37,10 +37,7 @@ class DataChecker : public virtual BaseChecker {
   void Enter(const parser::DataImpliedDo &);
   void Leave(const parser::DataImpliedDo &);
   void Leave(const parser::DataStmtSet &);
-  // These cases are for legacy DATA-like /initializations/
-  void Leave(const parser::ComponentDecl &);
   void Leave(const parser::EntityDecl &);
-
   // After all DATA statements have been processed, converts their
   // initializations into per-symbol static initializers.
   void CompileDataInitializationsIntoInitializers();
diff --git a/flang/lib/Semantics/resolve-names.cpp b/flang/lib/Semantics/resolve-names.cpp
index b7c7603d667d8..c8e458ecc0f2d 100644
--- a/flang/lib/Semantics/resolve-names.cpp
+++ b/flang/lib/Semantics/resolve-names.cpp
@@ -7,6 +7,7 @@
 
 #include "resolve-names.h"
 #include "assignment.h"
+#include "data-to-inits.h"
 #include "definable.h"
 #include "mod-file.h"
 #include "pointer-assignment.h"
@@ -1081,8 +1082,12 @@ class DeclarationVisitor : public ArraySpecVisitor,
       const parser::Name &, const parser::InitialDataTarget &);
   void PointerInitialization(
       const parser::Name &, const parser::ProcPointerInit &);
+  bool CheckNonPointerInitialization(
+      const parser::Name &, bool inLegacyDataInitialization);
   void NonPointerInitialization(
       const parser::Name &, const parser::ConstantExpr &);
+  void LegacyDataInitialization(const parser::Name &,
+      const std::list<common::Indirection<parser::DataStmtValue>> &values);
   void CheckExplicitInterface(const parser::Name &);
   void CheckBindings(const parser::TypeBoundProcedureStmt::WithoutInterface &);
 
@@ -8995,6 +9000,14 @@ void DeclarationVisitor::Initialization(const parser::Name &name,
               ultimate.set(Symbol::Flag::InDataStmt);
             }
           },
+          [&](const std::list<Indirection<parser::DataStmtValue>> &values) {
+            Walk(values);
+            if (inComponentDecl) {
+              LegacyDataInitialization(name, values);
+            } else {
+              ultimate.set(Symbol::Flag::InDataStmt);
+            }
+          },
           [&](const parser::NullInit &null) { // => NULL()
             Walk(null);
             if (auto nullInit{EvaluateExpr(null)}) {
@@ -9028,11 +9041,6 @@ void DeclarationVisitor::Initialization(const parser::Name &name,
               ultimate.set(Symbol::Flag::InDataStmt);
             }
           },
-          [&](const std::list<Indirection<parser::DataStmtValue>> &values) {
-            // Handled later in data-to-inits conversion
-            ultimate.set(Symbol::Flag::InDataStmt);
-            Walk(values);
-          },
       },
       init.u);
 }
@@ -9103,36 +9111,82 @@ void DeclarationVisitor::PointerInitialization(
   }
 }
 
-void DeclarationVisitor::NonPointerInitialization(
-    const parser::Name &name, const parser::ConstantExpr &expr) {
+bool DeclarationVisitor::CheckNonPointerInitialization(
+    const parser::Name &name, bool inLegacyDataInitialization) {
   if (!context().HasError(name.symbol)) {
     Symbol &ultimate{name.symbol->GetUltimate()};
     if (!context().HasError(ultimate)) {
-      if (IsPointer(ultimate)) {
+      if (IsPointer(ultimate) && !inLegacyDataInitialization) {
         Say(name,
             "'%s' is a pointer but is not initialized like one"_err_en_US);
       } else if (auto *details{ultimate.detailsIf<ObjectEntityDetails>()}) {
         if (details->init()) {
           SayWithDecl(name, *name.symbol,
               "'%s' has already been initialized"_err_en_US);
-        } else if (details->isCDefined()) {
-          context().Warn(common::UsageWarning::CdefinedInit, name.source,
-              "CDEFINED variable should not have an initializer"_warn_en_US);
         } else if (IsAllocatable(ultimate)) {
           Say(name, "Allocatable object '%s' cannot be initialized"_err_en_US);
-        } else if (ultimate.owner().IsParameterizedDerivedType()) {
-          // Save the expression for per-instantiation analysis.
-          details->set_unanalyzedPDTComponentInit(&expr.thing.value());
-        } else if (MaybeExpr folded{EvaluateNonPointerInitializer(
-                       ultimate, expr, expr.thing.value().source)}) {
-          details->set_init(std::move(*folded));
-          ultimate.set(Symbol::Flag::InDataStmt, false);
+        } else {
+          if (details->isCDefined()) {
+            context().Warn(common::UsageWarning::CdefinedInit, name.source,
+                "CDEFINED variable should not have an initializer"_warn_en_US);
+          }
+          return true;
         }
       } else {
         Say(name, "'%s' is not an object that can be initialized"_err_en_US);
       }
     }
   }
+  return false;
+}
+
+void DeclarationVisitor::NonPointerInitialization(
+    const parser::Name &name, const parser::ConstantExpr &expr) {
+  if (CheckNonPointerInitialization(
+          name, /*inLegacyDataInitialization=*/false)) {
+    Symbol &ultimate{name.symbol->GetUltimate()};
+    auto &details{ultimate.get<ObjectEntityDetails>()};
+    if (ultimate.owner().IsParameterizedDerivedType()) {
+      // Save the expression for per-instantiation analysis.
+      details.set_unanalyzedPDTComponentInit(&expr.thing.value());
+    } else if (MaybeExpr folded{EvaluateNonPointerInitializer(
+                   ultimate, expr, expr.thing.value().source)}) {
+      details.set_init(std::move(*folded));
+      ultimate.set(Symbol::Flag::InDataStmt, false);
+    }
+  }
+}
+
+void DeclarationVisitor::LegacyDataInitialization(const parser::Name &name,
+    const std::list<common::Indirection<parser::DataStmtValue>> &values) {
+  if (CheckNonPointerInitialization(
+          name, /*inLegacyDataInitialization=*/true)) {
+    Symbol &ultimate{name.symbol->GetUltimate()};
+    if (ultimate.owner().IsParameterizedDerivedType()) {
+      Say(name,
+          "Component '%s' in a parameterized data type may not be initialized with a legacy DATA-style value list"_err_en_US,
+          name.source);
+    } else {
+      evaluate::ExpressionAnalyzer exprAnalyzer{context()};
+      for (const auto &value : values) {
+        exprAnalyzer.Analyze(value.value());
+      }
+      DataInitializations inits;
+      auto oldSize{ultimate.size()};
+      if (auto chars{evaluate::characteristics::TypeAndShape::Characterize(
+              ultimate, GetFoldingContext())}) {
+        if (auto size{evaluate::ToInt64(
+                chars->MeasureSizeInBytes(GetFoldingContext()))}) {
+          // Temporarily set the byte size of the component so that we don't
+          // get bogus "initialization out of range" errors below.
+          ultimate.set_size(*size);
+        }
+      }
+      AccumulateDataInitializations(inits, exprAnalyzer, ultimate, values);
+      ConvertToInitializers(inits, exprAnalyzer);
+      ultimate.set_size(oldSize);
+    }
+  }
 }
 
 void ResolveNamesVisitor::HandleCall(
@@ -10482,12 +10536,16 @@ class DeferredCheckVisitor {
       if (const auto *target{
               std::get_if<parser::InitialDataTarget>(&init->u)}) {
         resolver_.PointerInitialization(name, *target);
-      } else if (const auto *expr{
-                     std::get_if<parser::ConstantExpr>(&init->u)}) {
-        if (name.symbol) {
-          if (const auto *object{name.symbol->detailsIf<ObjectEntityDetails>()};
-              !object || !object->init()) {
+      } else if (name.symbol) {
+        if (const auto *object{name.symbol->detailsIf<ObjectEntityDetails>()};
+            !object || !object->init()) {
+          if (const auto *expr{std::get_if<parser::ConstantExpr>(&init->u)}) {
             resolver_.NonPointerInitialization(name, *expr);
+          } else {
+            // Don't check legacy DATA /initialization/ here.  Component
+            // initializations will have already been handled, and variable
+            // initializations need to be done in DATA checking so that
+            // EQUIVALENCE storage association can be handled.
           }
         }
       }
diff --git a/flang/test/Semantics/bug161989.f90 b/flang/test/Semantics/bug161989.f90
new file mode 100644
index 0000000000000..6185cdea24b58
--- /dev/null
+++ b/flang/test/Semantics/bug161989.f90
@@ -0,0 +1,28 @@
+!RUN: %python %S/test_errors.py %s %flang_fc1
+program test
+  real, target :: x
+  type t1
+    integer :: j/1/
+    real, pointer :: ap/x/
+  end type
+  type, extends(t1) :: t2
+    integer :: k/2/
+  end type
+  type t3(k)
+    integer, kind :: k
+    !ERROR: Component 'j' in a parameterized data type may not be initialized with a legacy DATA-style value list
+    integer :: j/3/
+  end type
+  type t4
+    !ERROR: DATA statement set has more values than objects
+    integer j(1) /4, 5/
+  end type
+  type t5
+    integer uninitialized
+  end type
+  type(t2), parameter :: x2 = t2() !ok
+  integer(kind=merge(1,-1,x2%j==1)) tx2j
+  integer(kind=merge(2,-1,x2%k==2)) tx2k
+  !ERROR: Structure constructor lacks a value for component 'uninitialized'
+  type(t5), parameter :: x5 = t5()
+end
diff --git a/flang/test/Semantics/data21.f90 b/flang/test/Semantics/data21.f90
index 639f78440840a..181ae441a644a 100644
--- a/flang/test/Semantics/data21.f90
+++ b/flang/test/Semantics/data21.f90
@@ -1,6 +1,6 @@
 ! RUN: %flang_fc1 -fdebug-dump-symbols %s 2>&1 | FileCheck %s
 ! Ensure that DATA-like default component initializers work.
-! CHECK: j (InDataStmt) size=4 offset=0: ObjectEntity type: INTEGER(4) init:123_4
+! CHECK: j size=4 offset=0: ObjectEntity type: INTEGER(4) init:123_4
 type t
   integer j/123/
 end type