A decoding apparatus performs an image decoding method by receiving a bit stream including prediction information of a current block; deriving motion information of the current block on the basis of a merge candidate indicated by a candidate flag of the current block in a merge candidate list; deriving a MVD of the current block on the basis of MVD information of the current block and whether or not integer sample precision or fractional sample precision is used in the motion information; deriving modified motion information of the current block on the basis of the motion information and the MVD; and performing prediction of the current block on the basis of the modified motion information.