The following note to the consolidated financial statements for Goodyear Tire & Rubber Company relates to the principles of consolidation used in preparing the financial statements:
The Company's investments in 20% to 50% owned companies in which it has the ability to exercise significant influence over operating and financial policies are accounted for by the equity method. Accordingly, the Company's share of the earnings of these companies is included in consolidated net income.
Is it a requirement that Goodyear use the equity method in this situation? Explain.