In a display device, a method of displaying an augmented reality image comprising lighting effects, the method comprising: receiving image data, the image data capturing an image of a local environment of the display device; identifying a physical feature of the local environment via the image data; identifying local physical lighting characteristics of the environment; constructing an augmented reality image of a virtual structure to display the virtual structure over the physical feature in spatial registration with the physical feature; and outputting the augmented reality image to the display device; wherein, to create the augmented reality image, the virtual structure is displayed overlayed over the physical feature from a viewpoint of a user; wherein the augmented reality image comprises a plurality of modular virtual structure segments that are arranged in locations adjacent to one another to form the virtual structure, each modular virtual structure segment comprising pre-calculated information regarding a pre-computed lighting effect using a virtual lighting, wherein the lighting effects are stored with the associated modular virtual structure segment as light maps, cube maps or radiance transfer functions, the lighting effects being included into the virtual structure constructed via the modular virtual structure segments; and wherein instances of the modular virtual structure segments are processed to form an appearance of the virtual structure, wherein an appearance of the modular virtual structure segments comprising the pre-calculated information regarding a pre-computed lighting effect is modulated, based on the identified local physical lighting characteristics so that the virtual lighting matches the local physical lighting characteristics of the environment. receiving image data, the image data capturing an image of a local environment of the display device; identifying a physical feature of the local environment via the image data; identifying local physical lighting characteristics of the environment; constructing an augmented reality image of a virtual structure to display the virtual structure over the physical feature in spatial registration with the physical feature; and outputting the augmented reality image to the display device; wherein, to create the augmented reality image, the virtual structure is displayed overlayed over the physical feature from a viewpoint of a user; wherein the augmented reality image comprises a plurality of modular virtual structure segments that are arranged in locations adjacent to one another to form the virtual structure, each modular virtual structure segment comprising pre-calculated information regarding a pre-computed lighting effect using a virtual lighting, wherein the lighting effects are stored with the associated modular virtual structure segment as light maps, cube maps or radiance transfer functions, the lighting effects being included into the virtual structure constructed via the modular virtual structure segments; and wherein instances of the modular virtual structure segments are processed to form an appearance of the virtual structure, wherein an appearance of the modular virtual structure segments comprising the pre-calculated information regarding a pre-computed lighting effect is modulated, based on the identified local physical lighting characteristics so that the virtual lighting matches the local physical lighting characteristics of the environment.