Methods and systems for processing B pictures with missing or invalid forward reference pictures are disclosed. Aspects of one method may include decoding of a contiguous sequence of B pictures that immediately follow a first I picture after a sequence header. The decoding of the B pictures may handle video edit codes in the AVS1-P2 format and/or random access points. Some embodiments of the invention may discard B pictures that refer to invalid or missing forward reference pictures, while other embodiments of the invention may interpolate B pictures. For an invalid forward reference picture, the interpolation algorithm for generating pictures may use the invalid forward reference picture and the backward reference picture. For a missing decoded forward reference picture, as in a random access, the interpolation algorithm for generating pictures may use the backward reference picture.