In real world, when we add positive number to positive number we expect positive answer. Sudden negative result is oVerflow.
Adding negative to negative shouold give negative result. Positive means oVerflow.
And subtractiion is similar to addition, except the sign of one of addend.
HC12 CPU manual gives such V bit equation for ADD
V = D15 • M15 • /R15 + /D15 • /M15 • R15
where D15 sign bit of one addend, M15 - sign bit of second addend, R15 - sign bit of result.
So adding V is set when either 1) both arguments are positive and result negrative, or 2) when both args negative and result positive.
for SUB
V = D15 • /M15 • /R15 + /D15 • M15 • R15