Source: Warhammer Fantasy: 8th Edition

Last Stand
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The only time a standard bearer can be removed as a casualty before the musician and other rank-and-file models is if the unit breaks from combat. When this happens, we assume that the standard bearer fights to the very last, defending the honour that the rest of his unit have abandoned in their flight. If a unit breaks from combat, the standard bearer is slain immediately – remove the model. His place must be taken by a rank-and-file model from the rear rank of the unit, if there is one available. The victorious enemy can still overrun or pursue as normal.

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