Armor Enhancement Bonus
Magical enchantments can be applied to armor in two different forms: as an Armor Enhancement Bonus, or in the form of Armor Magic Properties.
If armor is enchanted with an enhancement bonus, the enhancement bonus is added directly to the armor's base armor bonus to AC, for purposes of determining the total AC provided by the armor. Thus, a +3 chain shirt, which has a base armor bonus to AC of 4, adds a total of 7 points to your armor class (counting the +3 enhancement bonus). The armor is still described as +3 armor (not +7 armor), since enhancement bonuses can only go up to +9, and the cost of the enhancement bonus is based on the plus provided. It is also a descriptive indicator of the armor's magical power.
An armor enhancement bonus stacks with other kinds of bonuses to AC, but not with other armor enhancement bonuses. If two different sources of armor enhancement bonus are available, only the highest available bonus may be used.
An armor enhancement bonus only provides a bonus to Armor Class. It has no effect on the armor's other attributes, such as Armor Check Penalty, Dex Penalty to AC, etc.