A method of encoding a time-domain audio signal is presented. In the method, an electronic device receives the time-domain audio signal. The time-domain audio signal is transformed into a frequency-domain signal including a coefficient for each of a plurality of frequencies, which are grouped into frequency bands. For each frequency band, the energy of the band is determined, a scale factor for the band is determined based on the energy of the band, and the coefficients of the band are quantized based on the associated scale factor. The encoded audio signal is generated based on the quantized coefficients and the scale factors.