A method of decoding video data, the video data comprising a slice that comprises a plurality of coding units, each coding unit being a rectangular video block that is coded using inter-prediction or intra-prediction, wherein each coding unit of the slice that is coded using inter-prediction is coded using temporal prediction using only reference pictures that have different temporal locations than the slice, the method comprising: determining motion information for prediction units of a current coding unit of the slice, the current coding unit being coded using inter-prediction and comprising a first set of prediction units coded using a merge mode and a second set of prediction units coded using an inter-prediction mode other than a merge mode; determining an illumination compensation status for the current coding unit at a coding-unit level, the illumination compensation status for the coding unit representing whether or not illumination compensation is used for the coding unit; and decoding the current coding unit based on the motion information determined for the prediction units of the current coding unit and the illumination compensation status determined for the current coding unit, wherein the illumination compensation status determined for the current coding unit is used for the second set of prediction units and not the first set of prediction units, each prediction unit of the first set of prediction units being decoded using an illumination compensation status of the merge candidate from which its motion information is derived, wherein the illumination compensation status for the current coding unit is explicitly extracted from an encoded bitstream at a coding-unit level when the current coding unit includes at least one prediction unit coded using an inter-prediction mode other than a merge mode. determining motion information for prediction units of a current coding unit of the slice, the current coding unit being coded using inter-prediction and comprising a first set of prediction units coded using a merge mode and a second set of prediction units coded using an inter-prediction mode other than a merge mode; determining an illumination compensation status for the current coding unit at a coding-unit level, the illumination compensation status for the coding unit representing whether or not illumination compensation is used for the coding unit; and decoding the current coding unit based on the motion information determined for the prediction units of the current coding unit and the illumination compensation status determined for the current coding unit, wherein the illumination compensation status determined for the current coding unit is used for the second set of prediction units and not the first set of prediction units, each prediction unit of the first set of prediction units being decoded using an illumination compensation status of the merge candidate from which its motion information is derived, wherein the illumination compensation status for the current coding unit is explicitly extracted from an encoded bitstream at a coding-unit level when the current coding unit includes at least one prediction unit coded using an inter-prediction mode other than a merge mode.