  The derivation of key equations for the variational Bayes approach is
well-known in certain circles. However, translating the fundamental derivations
(e.g., as found in Beal's work) to Friston's notation is somewhat delicate.
Further, the notion of using variational Bayes in the context of a system with
a Markov blanket requires special attention. This Technical Report presents the
derivation in detail. It further illustrates how the variational Bayes method
provides a framework for a new computational engine, incorporating the 2-D
cluster variation method (CVM), which provides a necessary free energy equation
that can be minimized across both the external and representational systems'
states, respectively.
