Ps3 decode sound still get HD?

[Horo]

So, couple nights ago a friend and i got into a argument over HD sound and ps3 decoding it. He says that in order to get HD sound you have to have a receiver that can decode it. I said if you let ps3 decode it and it sends to receiver you get the same HD sound.

Because i have an H/K AVR-247 and it doesn't decode HD sound he says i can't get any and says im wrong. I wanted to know if what he said is true or not cause i was pretty sure i was correct.