An apparatus for encoding video information, comprising: a memory unit configured to store video information associated with a reference layer; and a processor in communication with the memory unit, the processor configured to: determine a reconstruction of a video unit in an enhancement layer, wherein the reconstruction of the video unit in the enhancement layer is a summation of: (i) a residual prediction of the video unit in the enhancement layer, (ii) a spatial or temporal prediction of the video unit in the enhancement layer, and (iii) an adjusted residual prediction associated with the reference layer, wherein the adjusted residual prediction is a residual prediction associated with the reference layer equal to a difference between a spatial or temporal prediction of the video unit in the reference layer and a reconstruction of the video unit in the reference layer, multiplied by a weighting factor that is different from 1, wherein the weighting factor is selected from a plurality of weighting factor candidates, each of the plurality of weighting factor candidates indicated by a respective index. a memory unit configured to store video information associated with a reference layer; and a processor in communication with the memory unit, the processor configured to: determine a reconstruction of a video unit in an enhancement layer, wherein the reconstruction of the video unit in the enhancement layer is a summation of: (i) a residual prediction of the video unit in the enhancement layer, (ii) a spatial or temporal prediction of the video unit in the enhancement layer, and (iii) an adjusted residual prediction associated with the reference layer, wherein the adjusted residual prediction is a residual prediction associated with the reference layer equal to a difference between a spatial or temporal prediction of the video unit in the reference layer and a reconstruction of the video unit in the reference layer, multiplied by a weighting factor that is different from 1, wherein the weighting factor is selected from a plurality of weighting factor candidates, each of the plurality of weighting factor candidates indicated by a respective index. determine a reconstruction of a video unit in an enhancement layer, wherein the reconstruction of the video unit in the enhancement layer is a summation of: (i) a residual prediction of the video unit in the enhancement layer, (ii) a spatial or temporal prediction of the video unit in the enhancement layer, and (iii) an adjusted residual prediction associated with the reference layer, (i) a residual prediction of the video unit in the enhancement layer, (ii) a spatial or temporal prediction of the video unit in the enhancement layer, and (iii) an adjusted residual prediction associated with the reference layer, wherein the adjusted residual prediction is a residual prediction associated with the reference layer equal to a difference between a spatial or temporal prediction of the video unit in the reference layer and a reconstruction of the video unit in the reference layer, multiplied by a weighting factor that is different from 1, wherein the weighting factor is selected from a plurality of weighting factor candidates, each of the plurality of weighting factor candidates indicated by a respective index. <EOS>