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Both formats break a number down into a sign bit ''s'', an exponent ''q'' (between ''q''<sub>min</sub> and ''q''<sub>max</sub>), and a ''p''-digit significand / coefficient ''c'' (between 0 and 10<sup>''p''</sup>−1). The value encoded is (−1)<sup>''s''</sup>×10<sup>''q''</sup>×''c''. In both formats the range of possible values is identical, but they differ in how the significand ''c'' is represented. In the decimal encoding, it is encoded as a series of ''p'' decimal digits (using the [[densely packed decimal]] (DPD) encoding). This makes conversion to decimal form efficient, alreadywhile in software implemented algorithms ( see decNumber library by Mike Cowlishaw / IBM ) and even more with specialized decimal [[Arithmetic logic unit|ALUs]] as available in some IBM machines / CPUs ( "power" ). In the '''binary integer decimal''' ('''BID''') encoding, it is encoded as a binary number with bit values increasing by factor two from right to left. Position 0: value 2^0 -> 1, position 1: value 2^1 -> 2, and so on.
