format with a lot more bits, like a
each operation, unless you can fake it
that would have been shifted away
You can often use unnormalized denormals but with the exponent forced to 1. This gives the correct result for add/sub and multiply but it's usually better to normalize division and square root.
When you normalize you just need an extra exponent bit to allow for negative exponents. I often bias the exponent by 1 so that the largest denormal has exponent -1 (rather than 0). This allows the overflow and underflow tests to be done using a single compare. It also makes recombining the exponent and mantissa easier.
You can use a wider internal format for the calculations as long as no rounding is done to the internal format. You can only round once when you create the final result with the reduced exponent/mantissa (ie. rounding must be done on the final denormal value).
Wilco