Yes. You recognise and measure your investment in the subsidiary initially at cost in the parent's separate FS (IAS 27) (alternatively in accordance with IAS 39 or (new!) equity method also permitted).
Any additional capital contribution from the parent is added to the cost of the investment in terms of IAS 27. It doesn't matter if new shares are issued or not; this is only relevant for the subsidiary's equity accounts (share capital, reserves etc).