In algebra, the fundamental theorem of algebraic K-theory describes the effects of changing the ring of K-groups from a ring R to                     R        [        t        ]                 or                     R        [        t        ,                  t                      −            1                          ]                . The theorem was first proved by Bass for                               K                      0                          ,                  K                      1                                   and was later extended to higher K-groups by Quillen.
Let                               G                      i                          (        R        )                 be the algebraic K-theory of the category of finitely generated modules over a noetherian ring R; explicitly, we can take                               G                      i                          (        R        )        =                  π                      i                          (                  B                      +                                                f-gen-Mod                                R                          )                , where                               B                      +                          =        Ω        B        Q                 is given by Quillen's Q-construction. If R is a regular ring (i.e., has finite global dimension), then                               G                      i                          (        R        )        =                  K                      i                          (        R        )        ,                 the i-th K-group of R. This is an immediate consequence of the resolution theorem, which compares the K-theories of two different categories (with inclusion relation.)
For a noetherian ring R, the fundamental theorem states:
(i)                               G                      i                          (        R        [        t        ]        )        =                  G                      i                          (        R        )        ,                i        ≥        0                .(ii)                               G                      i                          (        R        [        t        ,                  t                      −            1                          ]        )        =                  G                      i                          (        R        )        ⊕                  G                      i            −            1                          (        R        )        ,                i        ≥        0        ,                          G                      −            1                          (        R        )        =        0                .The proof of the theorem uses the Q-construction. There is also a version of the theorem for the singular case (for                               K                      i                                  ); this is the version proved in Grayson's paper.