Abstract: An improved method and apparatus for creating multi-channel (or binaural) signals from a B-format sound-field source is disclosed. The method allows the encoded spatial format (B-format) to be separated into multiple bands, with each band assigned a short-term direction factor, from which the higher-resolution multi-channel (or binaural) output signals may be determined. The direction factor is determined, for each filter band, based on the short-term statistics of the soundfield signals in those bands. Based on this direction factor, the speaker drive signals are computed for each band by panning the signals to drive the nearest speakers. In addition, residual signal components are apportioned to the speaker signals by means of previously known decoding techniques.