What are derivatives, derivative instruments along with accounting policies and procedures for derivatives?

It is like I was sleeping when the world turned and now there is all of this talk about derivatives and I do not know what it is/they are. The context where I have seen it referred to is trading in the energy industry.

jwishz2009-03-10T12:45:08Z

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click on these links
http://pages.stern.nyu.edu/~igiddy/fas133.htm
http://en.wikipedia.org/wiki/Derivative_(finance)