This is not a new topic, but I have not seen a definitive answer.
My mother-in-law was born in what was, at the time, the city of Czernowitz, province of Bukovina, Austro-Hungarian Empire. After WWI, it became Chernauti, Romania and after WWII it became Chernivsti, Ukraine, which it remains today.
In her profile, and those of her family members, I have put Chernivsti, Ukraine as her birthplace. I have tried to explain the history of the city in the biographical text. My reasoning has been that using the current city and country makes it easy to locate on a map search. I can also understand the logic for using the city name that was in use at the time of her birth. That is, after all, the name that she remebered and that was on her birth certificate.
I am perfectly willing to go either way, but I would like to know if there is an official policy one way or the other.