Acquisition Method Accounting for Intercorporate Investments

ABC Corporation is preparing to acquire XYZ Ltd. Under the acquisition method of accounting, ABC Corporation will recognize the assets acquired and liabilities assumed at fair value on the acquisition date. Additionally, any excess of the purchase price over the fair value of the net identifiable assets will be recognized as goodwill.

As part of the acquisition, ABC Corporation has negotiated to purchase 80% of the voting shares of XYZ Ltd. What is the primary reason for ABC Corporation to account for this investment in XYZ Ltd. using the acquisition method?