An L-channel signal and an R-channel signal are input into a subtractor in which the difference between the L-channel signal and the R-channel signal is determined. The resulting signal is input into first and second multipliers. In the first multiplier, a mixed output signal is generated by using the channel mixture ratio calculated in a previous frame. In the second multiplier, a mixed output signal is generated by using the channel mixture ratio calculated in a current frame. The mixed output signals from the first and second multipliers respectively undergo spectrum transform in first and second spectrum transformers, and quantized in first and second quantizers. A comparator compares a quantization error in the first quantizer with that in the second quantizer. If the quantization error in the second quantizer is greater than that in the first quantizer by a predetermined factor, the comparator controls a switch to select the output of the first quantizer.