Video coder providing implicit coefficient prediction and scan adaption for image coding and intra coding of video

A method of decoding coded signals of a block X of new image data associated with a Video Object Plane, comprises identifying a block A horizontally adjacent to block X, a block B vertically adjacent to block A, and a block C vertically adjacent to block X. If any of block A, block B or block C is outside a boundary of the Video Object Plane, the method comprises assigning a value to the inverse quantized DC coefficient for the block and using the assigned value to compute prediction values for block X.