Some cycle accurate models are written by hand—for example the cycle accurate models supplied by ARM for their processor cores. However the great majority of cycle accurate models are generated automatically from Verilog or VHDL RTL. There are two commercial products (ARC VTOC and Carbon Design Systems ModelStudio) and one free open source product (Verilator).
These models typically follow 2-state, zero delay, synthesizable semantics. Embecosm Application Note 6 High Performance SoC Modeling with Verilator: A Tutorial for Cycle Accurate SystemC Model Creation and Optimization [10] describes how to created a Verilator SystemC model of ORPSoC which simulates at up to 130kHz on a standard Linux PC.