 Passive sign convention

The passive sign convention defines terminal electric potential difference $V=\varphi (A)-\varphi (B)$ and positive electric current entering at $A$. Then $VI$ is absorbed electrical power: positive means the component receives energy, negative means it supplies energy. Reversing both reference directions leaves the product unchanged. For a positive electrical resistance obeying Ohm's law, both $V$ and $I$ reverse together and Joule heating remains $I^{2}R\ge 0$.