A method of encoding a multichannel signal, such as a stereophonic audio signal, including at least first and second signal components includes transforming at least the first and second signal components by a predetermined transformation into a principal signal including most of the signal energy and at least one residual signal including less energy than the principal signal. The predetermined transformation is parameterized by at least one transformation parameter. The method further includes representing the multichannel signal at least by the principal signal and the transformation parameter.