A method for decoding a layered video stream by a decoder, the method comprising: receiving a coded bitstream comprising a coded base layer - BL - stream coded using gamma encoding for representation in a standard dynamic range - SDR -, a coded enhancement layer - EL - stream coded in perceptual quantization - PQ - encoding for representation in a high dynamic range - HDR -, and an inter-layer prediction unit data stream comprising inter-layer prediction unit processing parameters comprising sample adaptive offset - SAO - parameters; decoding the coded BL stream using a BL decoder to generate a decoded BL signal; decoding the inter-layer prediction unit data stream to determine the inter-layer prediction unit processing parameters; in response to determining that the inter-layer prediction unit processing parameters comprise a picture cropping flag, the picture cropping flag indicating that offset cropping parameters are present in the inter-layer prediction unit processing parameters: accessing a base layer picture in the decoded BL signal; accessing the offset cropping parameters; generating a reference picture for the enhancement layer by cropping a rectangular region of the base layer picture according to the offset cropping parameters, wherein generating the reference picture for the enhancement layer further comprises: applying gamma decoding and SDR to HDR perceptual quantization according to the received inter-layer prediction unit processing parameters; and applying a SAO process compliant to the HEVC standard according to the received SAO parameters; decoding the coded EL stream using an EL decoder to generate a decoded EL signal, wherein the coded EL stream is compliant to the HEVC standard, the decoding of the EL stream is being based at least in part on the reference picture for the enhancement layer. receiving a coded bitstream comprising a coded base layer - BL - stream coded using gamma encoding for representation in a standard dynamic range - SDR -, a coded enhancement layer - EL - stream coded in perceptual quantization - PQ - encoding for representation in a high dynamic range - HDR -, and an inter-layer prediction unit data stream comprising inter-layer prediction unit processing parameters comprising sample adaptive offset - SAO - parameters; decoding the coded BL stream using a BL decoder to generate a decoded BL signal; decoding the inter-layer prediction unit data stream to determine the inter-layer prediction unit processing parameters; in response to determining that the inter-layer prediction unit processing parameters comprise a picture cropping flag, the picture cropping flag indicating that offset cropping parameters are present in the inter-layer prediction unit processing parameters: accessing a base layer picture in the decoded BL signal; accessing the offset cropping parameters; generating a reference picture for the enhancement layer by cropping a rectangular region of the base layer picture according to the offset cropping parameters, wherein generating the reference picture for the enhancement layer further comprises: applying gamma decoding and SDR to HDR perceptual quantization according to the received inter-layer prediction unit processing parameters; and applying a SAO process compliant to the HEVC standard according to the received SAO parameters; accessing a base layer picture in the decoded BL signal; accessing the offset cropping parameters; generating a reference picture for the enhancement layer by cropping a rectangular region of the base layer picture according to the offset cropping parameters, wherein generating the reference picture for the enhancement layer further comprises: applying gamma decoding and SDR to HDR perceptual quantization according to the received inter-layer prediction unit processing parameters; and applying a SAO process compliant to the HEVC standard according to the received SAO parameters; applying gamma decoding and SDR to HDR perceptual quantization according to the received inter-layer prediction unit processing parameters; and applying a SAO process compliant to the HEVC standard according to the received SAO parameters; decoding the coded EL stream using an EL decoder to generate a decoded EL signal, wherein the coded EL stream is compliant to the HEVC standard, the decoding of the EL stream is being based at least in part on the reference picture for the enhancement layer.