We propose a framework called inverse augmented reality (IAR) which describes the scenario that a virtual agent living in the virtual world can observe both virtual objects and real objects. This is different from the traditional augmented reality. The traditional virtual reality, mixed reality and augmented reality are all generated for humans, i.e., they are human-centered frameworks. On the contrary, the proposed inverse augmented reality is a virtual agent-centered framework, which represents and analyzes the reality from a virtual agent's perspective. In this paper, we elaborate the framework of inverse augmented reality to argue the equivalence of the virtual world and the physical world regarding the whole physical structure.