Open up a new file. Create a new layer and use the custom shape tool to make a frame. Double click the layer to open the layer style window . Enable inner shadow, bevel & emboss and pattern overlay. Apply settings as follows:

Inner Shadow > Blend Mode > Multiply, Opacity > 100%, Distance > 10, Choke > 17, Size > 9.

Bevel & Emboss > Style > Pillow Emboss, Technique > Chisel Hard > Depth > 210%, Gloss Contour > Ring -- Double.

Pattern Overlay > Blend Mode > Normal > Pattern > Wood.

Duplicate the layer and press Control + T to transform. Scale the frame down on all four sides and press Enter.

Open the image you want to frame and drag it to the main file. Make sure to move the image layer below the frame layers.

If only Picasso would have had Photoshop...