What characteristic does a transaction need to lack in order to not measure at fair value under ASPE?

A transaction must lack commercial substance to not be measured at fair value under the Accounting Standards for Private Enterprises (ASPE). Commercial substance refers to the ability of a transaction to significantly change the cash flows of the entities involved. If a transaction does not have commercial substance, it signifies that the economic realities of the transaction do not significantly differ from its prior state.

In such cases, the transaction is often seen as more of a bookkeeping adjustment rather than a significant economic event, thus it is appropriate to measure it at a historical cost rather than fair value. For instance, exchanges of assets between parties that do not result in a substantial change in the cash flows and economic position of the parties involved would fail the commercial substance test and therefore would not be measured at fair value.

Other options such as substantial duration, independent valuation, and market competition relate to different aspects of financial transactions and do not directly affect the necessity of measuring at fair value under ASPE. Thus, the absence of commercial substance is critical in determining the measurement basis for a transaction.