A method and apparatus for applying DF processing and SAO processing to reconstructed video data are disclosed. The DF processing is applied to a current access element of reconstructed video data to generate DF output data and the deblocking status is determined while applying the DF processing. Status-dependent SAO processing is applied to one or more pixels of the DF output data according to the deblocking status. The status-dependent SAO processing comprises SAO processing, partial SAO processing, and no SAO processing. The SAO starting time for SAO processing is between the DF-output starting time and ending time for the current block. The DF starting time of a next block can be earlier than the SAO ending time of the current block by a period oft, where t is smaller than time difference between the DF-output starting time and the DF starting time of the next block.