In this section, we give an example showing how temporary overflow in two's complement fixedpoint causes no ill effects.
In 3bit signed fixedpoint arithmetic, the available numbers are as shown in Table 9.1.

Let's perform the sum , which gives a temporary overflow (, which wraps around to ), but a final result () which is in the allowed range :
Now let's do in threebit two's complement:
Thus, in both cases, the intermediate result overflows, but the final result is correct. Another way to state what happened is that a positive wraparound in the first addition is canceled by a negative wraparound in the second addition.