For addition, overflow is easy:  Keep track of the sign bits of the inputs
and output and do a little logic.  (Overflow if the A and B have the same
sign, while C has a different sign.)

For subtract, we compute the 1's complement of B and then add with a carry
in.  If we compute overflow based on B's sign after the 1's complement, is
that mathematically the same?  I think the one place where this could go
wrong is if we subtract zero and don't consider that the sign doesn't
change, but I can special-case that.

-- 
Timothy Normand Miller, PhD
Assistant Professor of Computer Science, Binghamton University
http://www.cs.binghamton.edu/~millerti/
Open Graphics Project
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