How do we account a material increase in the fair market value of an asset? Do we record it in the books?

No 

In the case of increasing the market value of assets 

   We increase the book value of assets in cases of re-evaluation only 

So in normal cases  we do not  record the  increases

Agreed with the answer given by: Mr. Adnan Karim  & Mr. Mohammad Iqbal Abubaker 

The generally accepted rule in the valuation of asset is to record them at cost. There should be no journal entry in the books until the asset has been sold to recognize gain or loss.

 However, we record the event through a memorandum entry and not by debiting and crediting any accounts. For instance during the current year there was a major valuation and in the succeeding years there was a set back again the value in the books of accounts should not be affected by these trends so it is more advisable and acceptable in practice to record these events thru an entry in the journal as a "Memorandum".

Revalued at fair value in the books

 Mr .Adnan Karim 

good answer 

It depents on your accounting policies if the company use cost module then their is no need for to record it ,and if the company use revaluation module then it can reveule the asset and should record the impact of this transaction in books of accounts.

if valuation of assets increase (material) we can record the as credit as "Revaluation of Assets"