A decoder and decoding method for use in surround sound system wherein at least four audio input signals representing an original sound field are encoded into two channel signals and said encoded signals are decoded into at least four audio output signals corresponding to the four audio input signals and have an amplitude ratio and a phase relationship. The decoder and method including means for: compensating the said encoded signals for variations in perceived loudness relative to frequency associated with the encoded two channel signals due to non linearity in human hearing response at least at some frequencies; producing steering signals in responsive to the phase relationship of the said compensated signals; decoding said encoded signals to produce audio output signals corresponding to audio input signals by varying at least the amplitude ratio of said encoded signals contained in each of the output signals in response to said steering signals.