Should the parent company make accounting entries when the subsidiary is profitable?

This is a long-term equity investment accounted for by the cost method. In individual statements, subsidiaries do not pay cash dividends, and the parent company will not handle them. (Unless, of course, long-term equity investment shows signs of impairment)

In the consolidated financial statements, it needs to be confirmed because it needs to be consolidated according to the equity method. That is, the cost method in individual financial statements is adjusted to the equity method in consolidated financial statements.