diff --git a/flang/lib/Semantics/expression.cpp b/flang/lib/Semantics/expression.cpp
--- a/flang/lib/Semantics/expression.cpp
+++ b/flang/lib/Semantics/expression.cpp
@@ -953,19 +953,11 @@
       std::move(designator.u));
 }
 
-// Components of parent derived types are explicitly represented as such.
 static std::optional<Component> CreateComponent(
     DataRef &&base, const Symbol &component, const semantics::Scope &scope) {
-  if (&component.owner() == &scope) {
+  if (scope.FindComponent(component.name())) {
     return Component{std::move(base), component};
   }
-  if (const semantics::Scope * parentScope{scope.GetDerivedTypeParent()}) {
-    if (const Symbol * parentComponent{parentScope->GetSymbol()}) {
-      return CreateComponent(
-          DataRef{Component{std::move(base), *parentComponent}}, component,
-          *parentScope);
-    }
-  }
   return std::nullopt;
 }
 
diff --git a/flang/test/Evaluate/folding12.f90 b/flang/test/Evaluate/folding12.f90
new file mode 100644
--- /dev/null
+++ b/flang/test/Evaluate/folding12.f90
@@ -0,0 +1,23 @@
+! RUN: %S/test_folding.sh %s %t %f18
+! Test folding of structure constructors
+module m
+  type parent_type
+    integer :: parent_field
+  end type parent_type
+  type, extends(parent_type) :: child_type
+    integer :: child_field 
+  end type child_type
+  type(child_type), parameter :: child_var1 = child_type(343, 2)
+  logical, parameter :: test_direct = child_var1%child_field == 2
+  logical, parameter :: test_parent = child_var1%parent_field == 343
+  type(child_type), parameter :: array_var(2) = &
+    [child_type(343, 2), child_type(256, 4)]
+  logical, parameter :: test_array_child = array_var(2)%child_field == 4
+  logical, parameter :: test_array_parent = array_var(2)%parent_field == 256
+  type array_type
+    real, dimension(3) :: real_field
+  end type array_type
+  type(array_type), parameter :: array_var2 = &
+    array_type([(real(i*i), i = 1,3)])
+  logical, parameter :: test_array_var = array_var2%real_field(2) == 4.0
+end module