IAS 36 Impairment of Assets requires that an asset is not carried at more than its recoverable amount. Which of the following best describes recoverable amount?

The higher of the present value of all future cash flows associated with the asset for the rest of its useful life and fair value. The higher of fair value less disposal costs and the present value of cash flows expected to be generated by the asset over a maximum of 5 years. The higher of the present value of all future cash flows associated with the asset for the remainder of its useful life and fair value less selling costs. The higher of fair value and the present value of cash flows expected to be generated by the asset over a maximum of 5 years.