I wouldn’t say that it’s a problem but it can create complications. Using the historic cost can be also characterised as a problem since it does not reflect the current value of an asset or a liability.
The problem with the mark to market is that it might change the balance sheet significantly and the change will be due to external factors (market conditions for example) which adds a further complication when you analyse a company.
Another problem is the fact that finding a fair value is not that easy 100% of the times. For example, patents, trademarks, brands etc are not traded and chances are that you won’t find an active market to get a fair value for your asset.