Mutual entity is an entity, other than an investor-owned entity, that provides dividends, lower costs or other economic benefits directly to its owners, members or participants. For example, a mutual insurance company, a credit union and a co-operative entity are all mutual entities.
Mutual entity is specifically discussed in IFRS 3 Business Combinations.
Source: Glossary of Terms of IFRSs as at 31 December 2008.