Ice cream maker Dreyer’s Grand Ice Cream Holdings has dismissed its accountant PricewaterhouseCoopers and hired KPMG, it said in a filing to the Securities and Exchange Commission.

During each of the two fiscal years in the period ended 25 December 2004, and through 2 December 2005, there were no disagreements with PwC on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements if not resolved to the satisfaction of PwC would have caused it to make reference thereto in its report on the financial statements for such years, Dreyers said.

In connection with its procedures regarding Dreyer’s interim consolidated financial statements for the quarter ended 24 September 24, PwC identified a control deficiency that resulted in an adjustment to the financial statements for that quarter. Specifically, Dreyer’s did not maintain effective controls to ensure that the valuation of deferred tax assets, including any associated valuation allowance, was determined based upon appropriate supporting documentation. Additionally, this control deficiency could result in a misstatement of the aforementioned account balances that would result in a material misstatement to the annual or interim financial statements that would not be prevented or detected.

Dreyer’s management determined that this control deficiency represented a material weakness and reported in its Form 10-Q Report for the quarter ended 24 September 2005 that, as of 24 September 2005, Dreyer’s did not maintain effective controls over the valuation and determination of its deferred income tax assets and income tax provisions. Dreyer’s is in the process of designing and implementing improvements in its internal control over financial reporting to address the material weakness described above. These improvements include implementation of a new internal control regarding the valuation of certain assets to support Dreyer’s valuation and determination of its deferred tax assets and income tax provision.

The reports of PwC on the consolidated financial statements of Dreyer’s as of and for the fiscal years ended 27 December 2003 and 25 December 2004 did not contain any adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principle.