A device comprising: a first transform unit configured to perform a first transform operation on a reference channel of a first audio signal to generate a frequency-domain reference channel; a second transform unit configured to perform a second transform operation on a target channel of a second audio signal to generate a frequency-domain target channel; a stereo channel adjustment unit configured to: determine an inter-channel mismatch value indicative of a temporal misalignment between the frequency-domain reference channel and the frequency-domain target channel; and adjust the frequency-domain target channel based on the inter-channel mismatch value to generate an adjusted frequency-domain target channel; a down-mixer configured to perform a down-mix operation on the frequency-domain reference channel and the adjusted frequency-domain target channel to generate a mid channel and a side channel; a residual generation unit configured to: generate a predicted side channel based on the mid channel, the predicted side channel corresponding to a prediction of the side channel; and generate a residual channel based on the side channel and the predicted side channel; a residual scaling unit configured to: determine a scaling factor for the residual channel based on the inter-channel mismatch value; and scale the residual channel by the scaling factor to generate a scaled residual channel; a mid channel encoder configured to encode the mid channel as part of a bitstream; and a residual channel encoder configured to encode the scaled residual channel as part of the bitstream. a first transform unit configured to perform a first transform operation on a reference channel of a first audio signal to generate a frequency-domain reference channel; a second transform unit configured to perform a second transform operation on a target channel of a second audio signal to generate a frequency-domain target channel; a stereo channel adjustment unit configured to: determine an inter-channel mismatch value indicative of a temporal misalignment between the frequency-domain reference channel and the frequency-domain target channel; and adjust the frequency-domain target channel based on the inter-channel mismatch value to generate an adjusted frequency-domain target channel; determine an inter-channel mismatch value indicative of a temporal misalignment between the frequency-domain reference channel and the frequency-domain target channel; and adjust the frequency-domain target channel based on the inter-channel mismatch value to generate an adjusted frequency-domain target channel; a down-mixer configured to perform a down-mix operation on the frequency-domain reference channel and the adjusted frequency-domain target channel to generate a mid channel and a side channel; a residual generation unit configured to: generate a predicted side channel based on the mid channel, the predicted side channel corresponding to a prediction of the side channel; and generate a residual channel based on the side channel and the predicted side channel; generate a predicted side channel based on the mid channel, the predicted side channel corresponding to a prediction of the side channel; and generate a residual channel based on the side channel and the predicted side channel; a residual scaling unit configured to: determine a scaling factor for the residual channel based on the inter-channel mismatch value; and scale the residual channel by the scaling factor to generate a scaled residual channel; determine a scaling factor for the residual channel based on the inter-channel mismatch value; and scale the residual channel by the scaling factor to generate a scaled residual channel; a mid channel encoder configured to encode the mid channel as part of a bitstream; and a residual channel encoder configured to encode the scaled residual channel as part of the bitstream. <EOS>