In the revaluation model, the fair value (defined as the amount for which the
asset could be exchanged between knowledgeable, willing parties in an arm’s-length
transaction), it is used in order to make comparision and to determine the differences
that will be registred like revaluations adjustments. Usually, the fair value is determined
by appraisers, using market-based evidence. Market values can also be used for
machinery and equipment, but since such items often do not have readily determinable
market values, particularly if intended for specialized applications, they may instead be
valued at depreciated replacement cost.