In one aspect, the teachings herein disclose a method and apparatus for signal quality reporting from a wireless apparatus that better reflects the actual interference cancellation efficiency expected at the wireless apparatus for a given transmission interval. In one example, the wireless apparatus knows or predicts the particular modulation and coding schemes (MCSs) that will be used in the transmission of one or more interferer signals for a transmission interval of interest. In turn, it uses those MCS values to estimate the actual interference cancellation efficiency the wireless apparatus will achieve with respect to those interferers. The wireless apparatus estimates and reports signal quality according to its estimated interference cancellation efficiency. Such processing allows the supporting wireless communication network to improve throughput by more aggressively scheduling the wireless apparatus for transmission intervals during which the wireless apparatus exhibits higher interference cancellation efficiency.