Can bank loan fees be deducted as interest expense?

Per an exchange from our audit firm, as it relates to a financing we just closed in November 2012:

Debt Costs (U.S. GAAP)

Summary

Underwriting, legal, and other direct costs incurred in connection with the issuance of debt measured under the fair value option should be recognized in earnings and not deferred.

Underwriting, legal, and other direct costs incurred in connection with the issuance of debt not measured under the fair value option should be presented as a deferred charge and not as a reduction in the carrying amount of the debt. When a classified balance sheet is presented, debt costs should be classified in a manner consistent with the classification of the related debt.

Payments for debt issue costs should be classified as cash outflows for financing activities on the statement of cash flows.

Hope this helps.

Thanks...perfect!