diff --git a/test/test_pyenvlib.py b/test/test_pyenvlib.py
index 3c305773..3a461ec2 100755
--- a/test/test_pyenvlib.py
+++ b/test/test_pyenvlib.py
@@ -30,7 +30,7 @@ from fnmatch import fnmatch
 TEST_VERSIONS=('2.3.7', '2.4.6', '2.5.6', '2.6.9',
                'pypy-2.4.0', 'pypy-2.6.1',
                'pypy-5.0.1', 'pypy-5.3.1',
-               '2.7.10', '2.7.11',
+               '2.7.10', '2.7.11', '2.7.12',
                '3.2.6', '3.3.5', '3.4.2', '3.5.1')
 
 target_base = '/tmp/py-dis/'
diff --git a/uncompyle6/verify.py b/uncompyle6/verify.py
index 946d64a3..96e16636 100755
--- a/uncompyle6/verify.py
+++ b/uncompyle6/verify.py
@@ -337,9 +337,11 @@ def cmp_code_objects(version, is_pypy, code_obj1, code_obj2, name=''):
             for c1, c2 in zip(codes1, codes2):
                 cmp_code_objects(version, is_pypy, c1, c2, name=name)
         elif member == 'co_flags':
-            # For PYPY for now we don't care about PYPY_SOURCE_IS_UTF8:
-            flags1 = code_obj1.co_flags | 0x0100  # PYPY_SOURCE_IS_UTF8
+            flags1 = code_obj1.co_flags
             flags2 = code_obj2.co_flags
+            if is_pypy:
+                # For PYPY for now we don't care about PYPY_SOURCE_IS_UTF8:
+                flags2 &= ~0x0100  # PYPY_SOURCE_IS_UTF8
             if flags1 != flags2:
                 raise CmpErrorMember(name, 'co_flags',
                                      pretty_flags(flags1),