Abstract: An artificial head (2) and a plurality of discrete monophonic microphones (8, 10, 12) are used to record one or more sound sources. The signals (14, 16, 18) from each of the microphones (8, 10, 12) then undergo binaural synthesis based upon acoustical properties of a real human head or the artificial head (2), and the signals (4, 6) from the head are equalised using air-to-ear transfer functions of the artificial head (2) or a real head. The resultant signals are combined by summing the individual left (48) and right (50) channels together and then these summed signals (52, 54) are transaural crosstalk compensated (56) to provide final left and right channel signals (58, 60) suitable for recording or playback which provide a three-dimensional sound effect to a listener both via headphones and loudspeakers.